With earnings season presenting so many trading opportunities, I’m going to show you one powerful way to execute a War Room speculation trade.

This is an ideal trade to make the day before a company reports earnings. It provides massive potential upside, and here’s one specific example that I used to bank a monster overnight winner.

Before I get into the result of the trade, let me set the scene…

Global makeup, skin care and fragrance leader Estée Lauder (EL) was getting set to report its latest earnings.

Even if you’re a man who has never applied one iota of makeup in your life, I’m sure you’re familiar with EL brands like…

Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, Tom Ford and more.

Going into earnings, EL had been consistently moving lower.

As you can see, the EL chart has been one of the most consistent downside charts you’ll ever see.

It’s moving down at a 45-degree angle!

Once I saw this obvious downside trend, I looked at Estee Lauder’s last three earnings reactions.

And then the super-speculation became crystal clear…

Over its previous three earnings reports, shares of EL had been stuck on a downward death spiral, moving lower by 15%, 7% and 13%. So I applied one of the most simplistic – yet powerful – trading mantras in existence today…

“The trend is your friend.”

Knowing that EL has been stuck in a downside trend – and that its previous three earnings reports triggered downside moves – I recommended November $130 puts for $7 per contract.

And guess what happened the next morning…

Right on cue, EL reported weak earnings… the stock got decimated, dropping $25 at the open… and War Room members cleaned house. The puts they entered for $7 blasted up to the $21-$22 range, making them a monster overnight return of 205% in less than 24 hours.

YOUR ACTION PLAN

As earnings season continues, I’m using this strategy in The War Room routinely. Below you’ll see what members did on this specific EL trade. I’ve included some of their notes below.

As you read through them, ask yourself…

Would I like to follow along with these trades in real time during earnings season?

If so, then I invite you to join us inside The War Room today.

P.S. Here’s just a small sampling of the EL notes I received from War Room Members after this trade…

“In $7.30 [EL] and out $26.30. 260% Gain [in one trading day]. THANK YOU BRYAN!!!!!! BEST % GAIN EVER!!” – Lance

“I closed the 1 Shares/Contracts [of EL] I opened at $7.88 for $22 [in one trading day]. This has to be one of the largest winners I’ve had. Great job BB!” – KeithB

“1 contract [of EL] BTO $7.95 STC $22.70 185.5% – + $1,470.00 [in one trading day].” – VT Dude

“TY BB!! In [EL] $7.80 & out $21.00 [in one trading day]. WOW!” – MarkM

Click here to join The War Room and start trading in our community today.