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Dr. Jim Schultz Shows How to Trade Earnings Season as a Premium Seller

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Chapters17 segments · tap to seek
ticker lesson

Breakdown

0:06lesson

Welcome to Know Your Options

  • Jim Schulz introduces the show
  • Audience interaction encouraged
  • Focus on earnings season for new traders
1:47lesson

Approaching Earnings Season

  • Earnings season is quarterly
  • Focus on defined risk strategies
  • Avoid undefined risk strategies for beginners
3:25lesson

Earnings Event Timing

  • Best time to enter earnings trades is pre-earnings
  • Avoid entering too early
  • Strikes should align with pre-earnings price
5:03lesson

Position Sizing for Earnings

  • Cut position sizing in half for earnings
  • Normal position sizing is 1-3%
  • Scale down as account grows
6:40lesson

Earnings Trade Execution

  • Use same strategies as regular trades
  • Vertical spreads and butterflies are good options
  • Align with normal trading approach
8:30lesson

Market Reaction to Earnings

  • Market reaction is unpredictable
  • Focus on binary outcomes
  • No guarantee of results
10:05lesson

Example Earnings Strategy

  • Use Alcoa as an example
  • Sell put spread with defined risk
  • Risk 3% of account size
11:56lesson

Earnings Strategy Adjustments

  • Reduce position size for earnings
  • Use weekly options for tighter spreads
  • Avoid wide strike spreads
13:26lesson

Earnings Strategy for Beginners

  • Expected move butterfly is recommended
  • Cheap and directional
  • Defined risk for beginners
15:12lesson

Earnings Strategy Execution

  • Set up butterfly with defined strikes
  • Max loss is small
  • Potential for large gains
16:47lesson

Earnings Strategy Width

  • Wider butterflies are better for potential gains
  • Narrow butterflies have higher risk
  • Balance between width and cost
18:18lesson

Earnings Strategy Recommendations

  • Use weekly options for tighter spreads
  • Avoid wide strike spreads
  • Focus on defined risk
20:02lesson

Earnings Strategy for Beginners

  • Expected move butterfly is ideal
  • Cheap and directional
  • Defined risk for beginners
21:41lesson

Earnings Strategy Execution

  • Set up butterfly with defined strikes
  • Max loss is small
  • Potential for large gains
23:10lesson

Earnings Strategy Width

  • Wider butterflies are better for potential gains
  • Narrow butterflies have higher risk
  • Balance between width and cost
24:46lesson

Earnings Strategy Recommendations

  • Use weekly options for tighter spreads
  • Avoid wide strike spreads
  • Focus on defined risk
26:24lesson

Conclusion on Earnings Season

  • Earnings season is unpredictable
  • Focus on defined risk strategies
  • Use butterflies for directional bets

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