Why Betting Big on Google Earnings Could Have Burned You

Hey Traders,

If you’ve been around the block a few times in the stock market, you know that earnings season is prime time for wild swings, big surprises, and plenty of lessons.

And yesterday was no different. Google reported earnings after the close and popped a whopping 7.5% overnight, only to slide throughout the day, ending the day with just a 3.5% gain over yesterday’s close.

Now, for those folks who had big, risky bets on this stock, that might’ve been one hell of a rollercoaster.

They probably got a rush out of that jump, only to see most of it fizzle out. It’s a classic case of what can happen if you’re diving in with high-risk positions — especially around an earnings event.

And that brings me to the point I want to drive home today…

If you’re looking to trade earnings with any consistency, taking wild shots isn’t a sustainable way to do it.

The Real Pitfall of Earnings Season

It’s easy to see the big swings and think, “I’ll hit it big this time!”

But what most people don’t realize is that, during earnings season, these sudden moves are almost impossible to predict. You’ve got more factors at play than any one person can analyze.

An earnings report isn’t just about whether they beat or miss expectations; it’s about how investors interpret the details. And believe me, interpretations vary.

That’s why I take a steadier, more calculated approach to earnings season.

Instead of risking it all on high-flying plays that rely on luck, I prefer strategies that put the odds in my favor.

This means looking at high-probability trades, income-focused strategies like covered calls, naked puts and credit spreads — plus stock moves that align with market momentum instead of betting against it.

Here’s why it works, especially with big players like Google:

  1. Consistent Income Over Big Gamble Payouts
    While risky plays might occasionally pay off big, they tend to wipe you out just as often — and sometimes even more often. Remember the statistic I always quote: most options buyers see their options expire worthless.

    But with my approach, I target 4-6% gains on each trade — not flashy, but usually reliable. And those gains compound fast when you’re making them consistently.

  2. Reduced Stress and Less Guesswork
    Betting big on earnings often means sweating it out, hoping for the best. But using a strategy that targets steady gains lets you sleep better at night. You’re not out there trying to predict the unpredictable.

  3. Putting the Odds In Your Favor
    I don’t “hope” a stock will skyrocket; I rely on a systematic, calculated approach. Selling options and managing trades around market momentum and reactions — not predictions — allows me to take advantage of volatility without being a victim to it.

Why You Should Reconsider High-Risk Moves

At the end of the day, there’s nothing wrong with wanting to take a shot — but for real success in the market, smart traders focus on steady gains.

With nearly four decades trading the markets, the biggest lesson I’ve learned is that steady income is a whole lot more predictable (and profitable) than trying to nail a big win every time.

If you want a deeper dive into my method and how to profit during earnings, check out this video where I talk about Google earnings.

Trade well,

Jack Carter

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