Even With the Earnings Numbers in Advance, You Couldn't Make Money.

Jim Schultz tells a friend that even if someone handed him a company's earnings numbers before they were released, he still would not know which way the stock would go, because you cannot know what the market will latch onto. Days later a mega cap reported what he calls an excellent quarter and the stock fell roughly 10 percent. Point made. That beaten-down name is exactly where he goes hunting. With the binary event out of the way and IV rank still elevated, he repeats the post-earnings short premium trade that has been working for him elsewhere, stepping in as a short-term contrarian with a defined-risk put spread. Along the way he explains why he wants to collect closer to 40 percent of the width on a defined-risk trade, and why he caps a single name well under 10 percent of the account. This is education, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Surviving the earnings gauntlet 00:37 Repeating last week's post-earnings trade 02:30 A dividend that looks wrong 04:04 Volatility is still elevated here 06:14 The friend who wanted to trade earnings 06:49 A great report and a 10% drop 10:06 Building the short put spread 11:04 Why he wants 40% of the width 12:06 Changing his mind on the strikes 14:00 Answering a viewer's chart question #tastylive #optionstrading #earnings #jimschultz #insidethetrade #impliedvolatility #putspread #definedrisk #positionsizing #optionseducation tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.