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Earnings Trader
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Cabot Options Institute – Earnings Trader Issue: December 27, 2022

Weekly Earnings Commentary

As I stated last week, we’re just three weeks away from earnings season. However, the next two weeks leave us with little to no trading opportunities as Wall Street pretty much closes up shop until after the holiday season passes. I expect that we will see a few opportunities during the second week of January, but the next two weeks are certain to be slow from an earnings announcement standpoint. That being said, Walgreens Boots Alliance (WBA) is due to announce next week, which seems to be the only company that could offer us a decent trading opportunity, especially if we choose to use a short strangle. But the current lack of announcements is okay, that’s just the way it goes this time of year. We will certainly have plenty of opportunities to keep us busy once the new earnings season rolls around in just a few weeks.

If you have any questions, please do not hesitate to email me at

Top Earnings Options Plays

Here are a few top earnings options plays for this week (12/27 to 12/30) if you are so inclined:


Courtesy of Slope of Hope

Trade Ideas for Next Week

As a reminder, you will quickly begin to notice I tend to stick with stocks that have high liquidity as it’s far easier to get in and out of a trade. Medium liquidity offers tradable options, but sometimes the bid-ask spread is wider, which means a greater potential for more price adjustments, making entering and exiting a trade difficult from time to time. Remember, there are roughly 3,200 tradable stocks with options and 11% have medium liquidity while only 3% have what’s considered high liquidity.

*Due to the shortage of earnings announcements during the last holiday-shortened week of the year, there are no real trading opportunities this week.

The next Cabot Options Institute – Earnings Trader issue will be published on

January 3, 2023.