Butterflies around earnings can be a great way to limit risk and maximize reward, not to mention they’re very flexible. Let’s follow up on the two we had to manage today and a third we’ll be looking to Thursday afternoon.

Earnings can be volatile and especially here lately we’ve seen a lot of solid reports that resulted in down moves for the stock. How can we take advantage of this while still having risk in only one direction? Let’s look at two examples in tonight’s video.

Based on past price action, its easy to be nervous holding onto QQQ puts. I use this to know when to get out.

Someone knew CTRL was going to be added to the S&P SmallCap 600, but it wasn’t me. Proper position sizing, and noting of this key retracement we were able to stay in the trade for today’s 9% gain.

These are two very different concepts, and if you aren’t familiar with them, it can cost you.

Although this current market has a couple of attractive bullish and bearish setups, this is the specific action I’m looking for.

Generally the decay of things is held in a negative connotation, but when we’re talking about options during the week of expiration, it’s the only way to trade

Stocks saw a sharp rebound on Monday, but are they going to be able to sustain the momentum? Up or down is a coinflip, but if the market leans in favor of bulls I’ll be looking to these two names for strength

Butterflies can be structured to create almost any kind of layout for your Greeks. Let’s look at two in tonight’s review and see where we might want to be neutral, vs looking for a directional move.

Sometimes it is hard to decide whether or not to buy the dip. This is my simple filter.