• STOCKEARNINGS.COM + AN APPROPRIATE TRADING METHODOLOGY QUALITY TRADE SETUPS

• MINI-TOUR • TRADING EARNINGS IS SPECULATIVE. DO IT WITH LOGIC, A SOLID PLAN

& CONTROLLED RISK. AVOID THE LOTTERY TICKET MENTALITY.• ENHANCE YOUR ODDS; BE LESS LIKE A GAMBLER & MORE LIKE THE

CASINO BY “STACKING THE DECK” TO ENHANCE YOUR TRADE.• “EXPRESSING THE TRADE” – STOCKS VS OPTIONS• SCREENING• HAVING A PLAN• PREPARATION AND BEING READY TO ACT

www.stockearnings.comAgenda

• YOU WON’T HEAR THIS TODAY :

“(WE’RE ) BUYING OPTIONS PRICED LESS THAN 50 CENTS, ANDWE’RE GOING FOR MASSIVE RETURNS…10 TO 1… 15 TO 1…EVEN 30 TO 1 (AND MORE). HEY, THEY ARE NOT ALL GOING TO HIT, BUT WHEN THEY DO…IT’S JUST SUPER FUN! AND BEYOND EXCITING…LIKE WINNING A MINI-LOTTERY!“

SE.COM & GOOD TRADERS DON’T REGARD TRADING EARNINGS AS GAMBLING OR A LOTTERY TICKET.

DOING THIS RIGHT MAKES EARNINGS A REAL $-MAKING ACTIVITY, NOT JUST “HOPE AND PRAY.”

www.stockearnings.comAgenda

VOLUME -- TRADE SYMBOLS THAT ARE LIQUID (>750K SH/DAY). THEY GENERALLY OFFER THESE PLUSSES:

• BETTER FILLS • BETTER BID/ASK SPREADS• GREATER EASE GETTING IN/OUT OF TRADES• IF TRADE GOES AGAINST YOU THERE USUALLY MINIMAL/LESS

SLIPPAGE VS THIN-VOLUME SYMBOLS• WHEN USED WITH A SOLID TRADING METHODOLOGY THEY TEND TO

BE LESS RANDOM AND GENERATE MORE RELIABLE RESULTS

MARKET-CAP (PERSONAL PREFERENCE)• OK - MEGA-CAP - > $200B; LG-CAP - $10B-$200 B; MIDCAP - $2B-

$10B; SM-CAP-$300M-2B• PASS - MICRO-CAP/PENNY STOCKS, $50M-$300M; NANOCAP - PINK

SHEETS/ OTCBB, <$50 MILLION

www.stockearnings.comScreening

www.stockearnings.comScreening – Liquidity/Market Depth

www.stockearnings.comScreening

www.stockearnings.comScreening

START WITH THE SE.COM CUSTOM-SCREENED FORECASTS OR PREDICTIONS, THEN SELECT FROM:• TRADE ABC STOCK DIRECTLY

• BUY INDIVIDUAL ABC PUTS/CALLS IF COMMITTING TO ONE DIRECTION, E.G., USING THE SE.COM PREDICTIONS (GENERALLY A FAIR DISTANCE OTM)

• DO A COMBINATION OPTIONS STRATEGY TO PLAY BOTH DIRECTIONS– LONG STRADDLES – BUY 1 CALL, BUY 1 PUT AT SAME STRIKE

AT/NEAR CURRENT PRICE– LONG STRANGLES – BUY 1 CALL, BUY 1 PUT SAME DISTANCE

FROM CURRENT PRICE IN EITHER DIRECTION, E.G. +/- $8 IF EXPECTING A $10 MOVE

www.stockearnings.comExpressing the Earnings Trade

• SPREAD TRADES -- DEBIT VERTICALS A DISTANCE AWAY FROM CURRENT PRICE, USUALLY NEAR THE PRICE TARGET OF THE PROJECTED MOVE -- REDUCES TRADE COST/RISK, ALSO CAPS UPSIDE– BULL-CALL SPREAD – BUY A CALL, SELL ANOTHER ABOVE TO

OFFSET COST – BEAR-PUT SPREAD – BUY A PUT, SELL ANOTHER UNDERNEATH

“AND NOW FOR SOMETHING COMPLETELY DIFFERENT”….FOR MONTY PYTHON FANS…)

• RATHER THAN TRADE THE ANTICIPATED MOVE OFF THE EA, BUILD YOUR TRADE ON THE ANTICIPATED END OF THE MOVE.

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comPremium Setups from the Website

www.stockearnings.comPremium Setups from the Website

www.stockearnings.comContext: What Symbol, Trade Duration?

• TRADE IN AGREEMENT W/THE INTRADAY TREND WILL RAISE PROBABILITY OF SUCCESS & FOLLOW-THROUGH FOR 1-DAY TRADE– THE INITIAL SURGE WILL BE INDEPENDENT OF TREND, BUT

FOLLOW-THROUGH WILL LIKELY BE IMPACTED BY TREND• ASSESSING TREND

– SELECT CHART TIMEFRAME– USE YOUR FAVORITE METHOD, E.G.,

• LOOKING FOR HIGHER-LOWSHIGHER-HIGHS FOR AN UPTREND (LOWER-HIGHS LOWER LOWS FOR DOWNTREND)

• MOVING AVERAGES, THE 50-OR 20-SMA, WHERE PRICE IS ABOVE FOR AN UT AND AS FURTHER CONFIRMATION THE CURVE IS POINTING UPWARDS (OPPOSITE FOR DOWNTREND)

• YOUR METHOD ISN’T THAT IMPORTANT – BUT USE IT CORRECTLY AND BE CONSISTENT

www.stockearnings.comContext – Trend

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comTrade Charts

www.stockearnings.comTrade Charts

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comExpressing the Earnings Trade

www.stockearnings.comExpressing the Earnings Trade

• WHEN ABC IN INDUSTRY X HAS AN EA, OTHER SYMBOLS IN X MAY TRADE IN SYNC, E.G., A SIGNIFICANT REGIONAL BANK W/AN EA MAY LEAD TO SYMPATHY TRADES WITH OTHERS. SO GOOD EARNINGS-MOVE FORECAST OFTEN LEAD TO RELATED TRADING OPPORTUNITIES

• CONSIDER SCALING-OUT OF A POSITION FOR PARTIAL PROFITS SINCE MOVES OFF OF EARNINGS TEND TO BE VIOLENT – “FREE TRADES” ELIMINATE STRESS.

www.stockearnings.comOdds & Ends

STOCKEARNINGS.COM & GOOD TRADERS DON’T REGARD TRADING EARNINGS AS GAMBLING OR A LOTTERY TICKET.

THE COMBINATION OF GOOD DATA & FORECASTS (STOCKEARNINGS.COM) & USING IT PROPERLY CAN MAKE TRADING EARNINGS A REAL, $-MAKING, LIFE-ENHANCING ACTIVITY.

STOCKEARNINGS.COM + FORECASTS IN CONTEXT + BASIC TRADING METHODOLOGY HIGH PROBABILITY, CONTROLLED RISK TRADES

THANKS FOR JOINING US & YOUR ATTENTION!

www.stockearnings.comWrap-up