Sell the news.

I have had some success recently buying puts on stocks that have earnings announcements that miss estimates. PNC is my most recent and I will exit that on Monday with a really good profit on February 18 monthly options.

NFLX was a good one on Friday as well for me.

Has anyone done this type of trading? It seems really simple and obvious. Company announces earnings and Misses . estimates or especially misses the whisper number and you short using puts

 

Extremely dangerous and the quickest way to blow up your account.

 

it works until it doesnt. Like almost everything in the market

 

It is working for you. Why the hell not do it. That's the beauty of options, defined risk. Don't trade more than you can afford to lose. And tell me how you decide which earnings anncmt to buy puts on lol. break a leg!

 

I came close for the first time in my life on purchasing PUTs last week (that wasn't a fat-finger order). But... most my trades are on the Montreal and Toronto exchange, which has too-wide a gap in most cases.

 

SR caller about Friday NFLX action:

 

In the beginning to intermediate stage of a bear market this strategy works. Need more be said