From Theory To Practice - February 4, 2021 - Executing a JEM Earnings Trade

published 3 weeks ago by tastytrade, Inc.

A JEM Earnings Trade, or Jessica-Earnings-Move Trade, is a great way to position yourself for earnings announcements.  Specifically with this strategy, you wait until the day of earnings, you put on a trade in a normal, 45-DTE cycle, and then you manage that trade just as you would any other trade.  Not only does this type of trade have the benefit of more mitigated Greek exposure and more consistent positive theta, but it also gives you more time to gradually make any necessary adjustments to the position.

more episodes from The tastytrade network