I love earnings season. The tug-of-war between earnings beats and disappointments can set the stage for some serious profits on option trades. I’ve used earnings announcements to make 40% in three weeks on Tesla Motors (Nasdaq: TSLA), 65% from Amazon (Nasdaq: AMZN) in 18 days and even 50% in Burlington Stores (NYSE: BURL) in just four days. Just this Wednesday, I told my readers about a limited-time opportunity in Southwest Airlines (NYSE: LUV). Most of you are probably familiar with Southwest, which has built a brand for itself as a low-cost airline. Today, it’s the largest domestic carrier in the… Read More
I love earnings season. The tug-of-war between earnings beats and disappointments can set the stage for some serious profits on option trades. I’ve used earnings announcements to make 40% in three weeks on Tesla Motors (Nasdaq: TSLA), 65% from Amazon (Nasdaq: AMZN) in 18 days and even 50% in Burlington Stores (NYSE: BURL) in just four days. Just this Wednesday, I told my readers about a limited-time opportunity in Southwest Airlines (NYSE: LUV). Most of you are probably familiar with Southwest, which has built a brand for itself as a low-cost airline. Today, it’s the largest domestic carrier in the United States, based on number of passengers flown. The company was set to report earnings before the open last Thursday, but despite a strong track record of earnings beats, shares were down more than 3.5% for the month. In fact, over the previous four quarters, the company had beaten expectations by an average of 10%. Better yet, in the week each of these earnings releases was announced, shares rose an average of 8%. We saw the biggest jump in January, with LUV rising 16% the week of fourth-quarter earnings on a surprise boost from lower fuel… Read More