Dear Profit Takeover reader,

If you haven’t heard my earnings motto yet, it’s Trade to it, NOT through it…

This is my strategy to buy and sell options before earnings but not hold them through earnings, then trade options again after earnings.

There’s a phenomenon I call volatility crush – when option prices divebomb after earnings.

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 until after earnings, you can grab cheap options thanks to the implied volatility (IV) crush.

I like to check big money flow into earnings because sometimes – traders just know something.

Here’s an update on the top earnings names I am watching this week:

  1. AAL – American Airlines Group Inc (NASDAQ:AAL)

AAL has been a behemoth of a name but I think the fade is on.

There’s even some massive put-buying in big money flow to confirm my thoughts. 

AAL just posted earnings on January 26, 2023 – EPS beat 8.23% even though revenue was barely down.

We have time to go short this name into the next earnings drop in April. 

Here are two more names I am looking to play for the post-earnings volatility crush…

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

PLTR is still on my watchlist – I even found a call spread with Olivia Voz this morning that I like.

PLTR Buy-to-Open March 17, 2023 $9 | $10 Call Spread for $0.23 or better

I like PLTR a lot, and AI names are only going to get juicier. 

PLTR just posted earnings yesterday – EPS beat 49.48% and revenue beat 0.72%.

I would find a cheap way to go long here, taking advantage of the post-earnings volatility crush. 

  1. C – Citigroup Inc (NYSE:C)

C isn’t down much since earnings posted on January 13, 2023 – EPS missed -3.52%.

I will be watching this name closely for some volatility crush. 

There’s plenty of time to play C before the next earnings drop. 

Join me tomorrow morning at 10:00 am (ET) for the live Profit Takeover show – right here in the main room.

Until next time,

Mark Sebastian


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