Buy OTM Calls -- Bullish Strategy For Earnings Trading
October 9, 2019
Swing for the fences with this high-risk, high reward strategy.
Perfect for trades you think could be a home run if they hit, but that you’re not comfortable enough with to own the stock if they miss.
Buy a call option with a strike price above the current price of the stock.
This is an aggressive strategy because it requires the stock to move higher at high velocity in order to profit.
The reward for being right can be extremely high, with gains of 5x, 10x or higher after some large earnings moves.