Tackle Today: Holding Investments into Earnings
January 20, 2021
≈ What’s the proper way to hold a stock investment through earnings? ≈
Though we are generally against holding short-term trades into earnings, the same cannot be said about investments. After all, if you’re going to own a stock for more than three months, then you’re automatically riding through at least one quarterly dance. Here are a few suggestions to help you brave the uncertainty.
First, know your vehicle. We talk loads about using technical analysis and indicators like ATR and PAY ranges to understand a stock’s personality. Use the same logic for studying past earnings gaps to understand the nature of what you’re getting into. Do you own a stodgy old consumer staples stock like Pepsi and Coca-Cola? Or a high flying, freshly minted IPO stock like Airbnb or Door Dash?
Second, position size is paramount. It’s one thing to ride Apple into earnings when it’s 5% of your portfolio. It’s quite another rolling dice into the event when it’s 75% of your account. Placing the lion’s share of your dough into a single position isn’t investing. It’s speculation.
Third, if you’re uncomfortable holding long-term stock positions into earnings, then learn the dynamics of using covered calls and protective puts to control your exposure better.
#TeamTackle
Chart of the Day
NETFLIX Earnings Gap
Netflix is up +14% in early trading Wednesday after reporting their quarterly earnings which revealed they topped 200 million subscribers for the first time and hinted at potential stock buybacks in the future.
Video of the day
Goldman Sachs Earnings Analysis
Coach Matt analyzes Goldman Sachs Earnings report in this clip from Tuesday’s Halftime Report.
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Coaches Show Replay
If you missed last night’s episode where Coach Tyler Craig Earnings Season Best Practices or would like to watch it again, check it out here.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Trade Masters 7:00 pm EST
Join us for a special webinar with the coaches where they’ll analyze some trade setups.
Bear Market Survival Guide Mastermind Group 8:30 pm EST
The Condors for Cash Flow system is a high probability option selling strategy designed to generate passive income over time. Join us tonight to go over next month’s orders.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
