Dual Edge Research offers two newsletters, the Bull Strangle Newsletter focusing on stocks and options, and the Smart Spreads Newsletter specializing in seasonal commodity futures spreads. Both newsletters offer different investment strategies that work well individually but even better together, providing a complete investment perspective under one subscription.
With earnings season starting, option traders face a unique risk due to earnings announcements introducing binary risk that can instantly overwhelm option positions. Earnings pose a different kind of risk as they compress uncertainty into a single moment, leading to potentially unlimited downside from a single overnight gap for option sellers.
Elevated implied volatility before earnings doesn’t fully protect from unexpected gaps post-earnings, causing losses that may seem shocking. Many traders underestimate the impact of a single earnings gap, which can wipe out weeks of steady gains and introduce emotional decision-making into trading strategies.
Professional option income strategies avoid earnings windows to mitigate catastrophic losses, treating earnings as a hard constraint rather than a calculated risk. By steering clear of earnings, traders improve consistency and reduce the biggest source of catastrophic loss from their strategy.
As earnings season unfolds, it’s crucial to approach trading with caution and avoid chasing elevated premiums. Successful option traders survive by building structures that withstand all market environments, sidestepping earnings risk rather than gambling through it. The Bull Strangle Newsletter emphasizes disciplined option income strategies designed to navigate earnings risk successfully.
For just $1 for the first month, you can subscribe to both newsletters, the Bull Strangle Newsletter focusing on stocks and options, and the Smart Spreads Newsletter specializing in seasonal commodity spreads. Each newsletter offers consistent income on its own, but when used together, they create a diversified trading approach suitable for any market environment.
For more information and to subscribe, visit BullStrangle.com or contact Darren Carlat at Dual Edge Research for further details. Remember to consult with a financial advisor before making any investment decisions, as all investments carry inherent risk.
Read more at Barchart: How to Avoid the Biggest Risk in Options Trading
