[kiasucapital]

Here's a simple trading system that I like to use during earnings season

1. Find a stock that has gapped at least 5-10% during the last 2-3 earnings.
2. Buy a strangle (an out of the money put and an out of the money call) only buy 1 strike price out.
3. Buy 3 days to 1 week before earnings announcement.
4. Use a 25% stop loss
5. Close out the trade after the annoucement, or if the stock has gapped in a direction and you think it will continue that way then close out the other side of the trade and hold onto the profitable one.

[Airelon]

Heyya mate, I moved the discussion out of the Forex, and over here to more the "stock" side of things. No worries, but I thought it'd fit better over here.

Yeah, I know another guy that loves to use strangles during earnings season. Never did so myself. It's one of those things that makes a lot of sense, but never really tried it out.

[DarwinP]

Any chance you can publish some of these beforehand, so we can see how they work in the real world? I'd be very interested.

Thanks

Darwina

[kiasucapital]

Hi Darwina-I've been publishing Free Trades in the RichDad forum you can also get them if you subscribe to my newsletter or blog.

I published a strangle on RIMM last week and it returned 257% on investment in about 1 week.

Cheers,

Kiasu