I want to tell you about a little trading strategy I use when earnings are going on.
And it’s all based on this piece of timeless market wisdom:
“Amateurs control the open, professionals control the close.”
I look at these tech stocks and find out when their earnings are going to be announced.
So for example, I just did this with NVDA.
Yesterday, NVDA was reporting earnings after the close.
So because pros control the close, I watch the market right in the last 15 minutes.
I see that NVDA is going up right before the close.
So to me, it’s like the professionals know that the stock is going to open even higher the next day.
With that in mind, I buy an at-the-money call option about 2 minutes before the market closes.
Then NVDA announces their earnings and BOOM — today NVDA opened up.
Now, here’s the thing. I sell that call option right at the open. Maybe I set a limit a little higher than the opening price. But I don’t chase it.
Doing that, I’ve been able to book some of the highest profits I’ve ever gotten on call options.
Now, it doesn’t always work and you need to make sure you’re not trading with money you can’t afford to lose.
But sometimes those trades can really produce huge wins overnight.
Trade well,
Jack Carter
