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Key Lessons Learned from the Hottest Options Trades

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  • (1:30) - How To Trade Options During Earnings Season
  • (5:40) - Retail Option Trading: Footlocker
  • (9:30) - Trading Options With Restaurant Stocks: Shake Shack
  • (13:20) - Lottery Ticket Trade   
  • (15:30) - Iron Condor Trade: Amazon
  • (19:40) - Stocks that can't miss earnings: Should you trade them?
  • (24:05) - Facebook Options Trade
  • (27:05) - Dave gives advice on banks, energy and retail
  • (31:00) - Stock Ticker Recap

Welcome to Episode #74 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by David Bartosiak, Zacks Momentum Strategist and the mastermind behind Zacks Live Trader, the options video service, on YouTube.

It’s not easy to trade during earnings season, if you’re using options or even just playing the regular trade.

Every week, Dave brings you the options trades on Zacks Live Trader while Tracey covers the best earnings surprise charts on the street.

As Tracey warns every quarter, just because a company has beaten every quarter for 5 years doesn’t mean they’re going to continue to do so.

And past performance doesn’t mean it will continue in the future.

First quarter earnings season arrives in just a few weeks. What lessons are there from the last earnings season that you can take with you when trading the next one?

Lessons Learned from Trading Earnings Reports

1.       The retailers are among the most difficult because everyone is negative on them. Dave discusses how he approached the options trade on Foot Locker (FL) and successfully navigated the trade.

2.       The year of the restaurant IPO was in 2015 but since then, the restaurants have been in a downward spiral. With Shake Shack (SHAK - Free Report) , Dave explored its earnings history and took a chance that paid off.

3.       What do you do with a stock trading above $800 a share? It’s getting harder to trade the options on Amazon (AMZN - Free Report) because it’s tougher to get a big move out of a stock over $800. But Dave put on an Iron Condor. Did it work?

4.       Nvidia (NVDA - Free Report) was soaring heading into its earnings report. Should options traders play this kind of chart or not? Dave’s advice: If Nvidia has been your horse, then bet on it again.

5.       Facebook didn’t have a big initial move after its earnings report, but a good options trader doesn’t need a big move up or down. If you have patience, you can still cash in. Find out how Dave arranged this trade to take advantage on the post earnings drift.

What are Tracey and Dave looking for in this coming earnings season?

Find out the answer to this and more on this week’s podcast.

Want to Learn How to Trade Options?

Earnings season is fast approaching. Dave Bartosiak takes you through the options trades step-by-step on YouTube on Zacks Live Trader.

Sign up for the free 2-week trial and start learning how to trade options today.

Interested in Micron? Check out Dave’s free analysis below:


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Visa Inc. (V) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Shake Shack, Inc. (SHAK) - free report >>