Traders,

Earnings season always has a few land mines that blow holes into portfolios. And the unfortunate reality is that you never know where they lie. This week a few explosions rocked the Street. The first was Snap Inc, and the second was Verizon. The former is no stranger to monster gaps. Its history is littered with them, so shareholders shouldn’t be too surprised. Still, a nearly 40% decline in a single session has to hurt.

It’s the Verizon decline that I find more jarring. The telecom giant is a steady dividend payer with a history of mild moves. But last night’s disappointing showing has shareholders fleeing in droves. VZ stock is down almost 7% in early-morning trading and cracking major support zones on the weekly and daily time frames. What’s worse is that it had already fallen significantly yesterday following a dismal report from AT&T.

Consider this your friendly reminder that holding into earnings might turn out fine most of the time. But when it gets ugly, it gets UGLY.

Video Of The Day: Gino’s Gems – How to Know Which Earnings Matter #tradinghacks

Chart of the Day: Verizon ($VZ)

After today’s defeat, VZ stock is down 28% from its peak.

Options Theory Blog

The Bear Tamer

In the Bear Market Survival Guide, I explore the idea of protecting a stock portfolio. The simplified version of the strategy involves a diagonalized collar, but we dubbed it “The Bear Tamer.” Here’s what it looks like.

Today’s line up

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Cash Flow Club Replay

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