04/30/2024

Hey Trader,

It’s EARNINGS SEASON!!

This is when we see some CRAZY stock moves...the catalyst everyone has been waiting for! You'll see gaps down and up depending on how traders react to the news. 

Mark and I like to enter high-risk, high-reward bets on these volatility events ahead of the catalyst. We were thrilled last week with META gapping down. But what we're going to discuss today is the AFTERMATH trades.

Mark and I are hosting a class on this new type of trade today at 2:00 pm.

Become a Trade to Close member here to get access to our Aftermath Masterclass!

One Aftermath trade we'll go over today is called an island top.

We traded META ahead of earnings...and guess what. We're going to trade it again now since it’s making this spooky pattern: The island top. An island top is when a stock gaps higher, consolidates and then gaps lower creating what looks like an island.

This pattern is usually created around earnings events because HELLO earnings gives us these awesome violent moves. 

Normally when a stock gaps higher on earnings, it has potential to continue to fly. I say that lightly because it depends entirely on the chart, market conditions and the potential target. But when you get one of these babies...an island top...you can better your chances on it having way more follow through. This is just one example of an earnings trade Mark and I take.

If you want to trade all types of earnings with us, join us for our alerts and the class!

Next up, Mark has everything VIX and a sweet strangle to play!

Volatility Spotlight 

By Mark Sebastian

VIX futures are back in contango and the VIX is back below 15. 

With how much the market is moving we are starting to see value in options again.  

Major events like the FOMC, Non-Farm Payrolls, AMD, AAPL, and AMZN earnings this week are building that value.

I can own the May 13 5110-5130 strangle for about 100 bucks…less than 2% for a 2 week look at the market. 

Don’t forget, our Aftermath Masterclass is later today at 2:00 pm ET (for members only) so join Trade to Close right here and catch our best strategies to maximize gains during earnings season!

Hope to see you soon!

Always be closing,

Olivia Voz and Mark Sebastian