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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 andy@cabotwealth.com.

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:

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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.

Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.