(2) Use Options To Trade Intraday Volatility
It is one of the most guaranteed & money making tips to trade stocks during earnings season. Equities can become highly speculative during earnings calendar. They may show increased volatility on either side.
If your positions are on the right direction then you can gain huge profits. But, if your position turns out to be on wrong direction then you have to bear huge losses.
You can increase chances of gaining profits on either side by using option trading strategies. You should buy call & put options of same or different strike price.
It will help you to successfully trade intraday volatility. You can gain unlimited profits with lower capital risk. However, you should not forget that option trading also carries the risk of premium loss.
(3) Don’t Chase Share Price Without Analyzing Support & Resistance Levels
It is one of the most technical & authentic tips to trade stocks during earnings season. Securities are found to trade in either short-term or long-term ranges. They usually have low to high support or resistance levels within the trading range.
You should try to make positions near those levels. If you are expecting good results then it will be better to make buy position near support levels rather than near resistance levels.
Similarly, if you are expecting poor results then it will be better to make sell position near resistance levels rather than near support levels. In both cases, your chance to gain profits is on higher side.
However, you should not forget to place stop loss order outside trading range. You may also choose to make positions after trading range breakouts for safer side.
- Trading During Earnings Season: Shutterstock