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[Options] Earnings Season Draws First Blood

In today’s Jam Session, I discussed the potential for markets to hit the pause button soon (if they haven’t already) and how that’s affecting my trade selection going forward.

Considering that some of our big winners have hit or are nearing our profit targets, or have been approaching expiration, it feels like a perfectly logical place for this pause to happen. $AMZN hit our upside price objective this afternoon!

And it might be earnings season that does it.

Earnings season is beginning again, and our first earnings casualty is already on the books with Fastenal $FAST getting taken to the woodshed this morning.

What the market taketh, I hope it will giveth back via an “add-on” trade we’ve got open in Wells Fargo $WFC. It is specifically betting on earnings being the catalyst to pop $WFC higher out of a high-and-tight flag.

The good thing about both the $FAST and $WFC trades is I have defined my risks beforehand. I don’t want my trades to become worthless following earnings, but if they do, the dollar loss to my portfolio will feel like any other small loss. No sweat.

We discuss this and more in this week’s short Options Jam Session:

~ @OptionsSean

The post [Options] Earnings Season Draws First Blood appeared first on All Star Charts.

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