Dear Profit Takeover reader,

You know my earnings motto: Trade to it, NOT through it…

That’s because of the bittersweet post-earnings volatility crush – when option prices divebomb.

Now, if you are already in a trade you’ll want to get out before earnings so you don’t lose your profit. 

But if you wait for the volatility crush after earnings, you can scoop up some super cheap options thanks to the implied volatility (IV) crush.

Here are some earnings names I like and how I’d trade them:

  1. PLTR – Palantir Technologies Inc (NYSE:PLTR)

This big AI name hasn’t been moving much overall, but I think it will be heading higher short term since AI is so hot right now.

I put on a PLTR trade last week, but PLTR has earnings on Monday – so I would recommend if you aren’t already in a trade, to wait until after earnings to go long. 

Options will likely be even cheaper on PLTR next week with the post-earnings IV crush.

  1. F – Ford Motor Co (NYSE:F)

Of all the auto names, I like F. 

I like F to head higher and calls are cheap right now.

F posted earnings on February 2, 2023 – I would take advantage of the IV crush for F post-earnings and go long here.

  1. BP – BP plc (NYSE:BP)

I think it’s time to take some profit if you are long BP or other oil conglomerates.

And since BP has a post-earnings IV crush right now, it could be a good time to pick up some cheap options.

If you think BP is heading higher, take profit and roll up. 

Until next time,

Join me this Monday at 10:30 am (ET) for the live Profit Takeover show – right here in the main room.

Until next time,

Mark Sebastian


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