Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance It's earnings season again, and this one's going to be a doozy. The banks are up first. Usually you play earnings using options strategies that define your outcome based on a quick and large move in one direction or the other. But what if that move does not happen? What if that move is muted? Well, you will usually lose your premium completely because the risk premium that inflated the option in the face of earnings will fizzle quickly. That's not optimal. But there is another way to play earnings - one that lets you take advantage of that risk premium by selling the risk against another position. It's a strategy that gives you the chance at a big gain - and gives you enough time for that gain to occur. | 
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