One of the most lucrative trading setups following earnings is something called the Earnings Gap. This is a strategy that everyone should have in their Trading Playbook. Depending on the quality of the setup, this is a trade that can make your week. We frequently trade the Earnings Gap for 100%, 200%, and 300% gain or more.

By utilizing the recent negative catalyst paired with technical analysis, we were able to profit on this setup while the stock moved lower.

Have you ever wondered if there is a more concrete way to play stock earnings reports with options? Directional trades over earnings are gambling no matter how you look at it. Let us teach you a better method.