Now, if we pull up a standard earnings breakdown for Nexstar, we'll see the company has beaten earnings expectations the last four quarters. But that tells us very little. Shares dropped more than 4% on 2021 fourth quarter earnings... though that's not outside the norm for the company in that quarter. Now, here's where the secret I'm going to share with you comes in... Almost every company has some earnings reports that are cheered by investors and some that are jeered. And the same quarterly reports tend to get the same reaction every single year. This relates back to the cyclical nature of businesses. I don't care about the linear approach to earnings - i.e., "Nexstar has beaten the consensus the last four quarters." You're making a mistake if you invest on that data. All I want to focus on is how Nexstar shares have done on first quarter earnings reports. Since 2016, shares of the broadcast operator have tumbled only once on this release. 2016: 2.93% 2017: 3.59% 2018: 2.49% 2019: -1.59% 2020: 10.33% 2021: 0.51%
That's my vertical approach to earnings. It lets me make apples-to-apples comparisons. It also gives these trades unparalleled predictability. I know that shares of Nexstar have moved higher 83% of the time on first quarter earnings since 2016. And the average one-day move on this report is 3.04%. This allows me to feel confident about targeting some near-term out-of-the-money calls, like the May 20 $165 options. A move above $168 would potentially reward me with a one-day double-digit gain. Any higher, and I could double my money. In my vertical approach research, I also see that two of the weakest years - 2019 and 2021 - were not election years. With midterm elections ahead, our year-over-year comparisons should be favorable. And that means we should see a nice pop. An Options Strategy for Security I'm always looking for the best chances for success, especially with options. And I do that using a seasonal and cyclical trading strategy. I target companies that are at low points and about to see their momentum shift. I know how they move on earnings because of their business cycles. I also know which earnings reports to avoid and which ones to trade. Other strategists can get timid around earnings and slink away from the volatility. But I'm armed with research and knowledge. I understand that there are consistent, predictable winners that will be the keys to my success... and I have Oxford Club portfolio performance awards to back this up. You don't always have to be looking for the company that is going to be the "next Apple" or that is going to "revolutionize the way we live." But you do have to understand that the path to sanity and profits in this whipsawing market is through predictable trends, like the way a company's shares move on earnings. And you have to understand how to unlock the potential upside with options. YOUR ACTION PLANImagine turning $1,000 into $80,000 - in less than a year. That's what a regular investor did by using the extraordinarily powerful tools called options. So what's the secret to mastering this investment skill? Well, I have developed a strategy for chasing maximum profit opportunities, and I offer an in-depth explanation of it right here. If you want to learn the secrets of options trading, you need to join my Oxford Options Accelerator event online. Don't worry... It's 100% free. Click here for the details. Here's to high returns, Matthew | 
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