There are times when you just don’t know whether a trade will work out or not. But you have money in the game and if you lose, you’ll lose big.

But if you win, you’ll win big.

Most people focus only on the “win” side, thinking there is nothing they can do on the “lose” side but grin and bear it.

WRONG!

The market is full of tools that the savvy investor (you) can use.

The married put is one such example.

Let’s say you own shares in a very volatile company and it’s about to report earnings. It’s a real toss-up. The shares could move up sharply or down sharply.

This is what you have to do…

1. Look at the options chain (the list of options, including strike prices, expiration dates, etc.).
2. Find a put option that allows you to reasonably protect yourself from a significant downside move.

In case you didn’t know…

A put option is a bet that the underlying stock will go lower. It can provide near-dollar-for-dollar protection on the way down if your strike price is close to the actual share price at the time you buy the put.

Let’s look at how it works with an example.

You own stock XYZ, and it’s trading at $22. Post-earnings, it could go up or down 30% or more. To protect your position in the event it falls, you buy a put. The put with a $20 strike price is trading at $1 and expires a week after earnings.

If the stock drops to $20, you will lose $2 and the $1 you paid for the put. So instead of potentially losing 30% ($6.60) or more if the stock drops, you have reduced your potential loss to less than half of that by buying protection that kicks in once the shares move below $20.

But any further losses are protected completely by the put that you bought.

Let’s say the numbers were really bad and the shares fell by $12 to $10. Well, in that case, your loss is still limited to $3 and the put is worth $10 (the $20 strike minus the $10 price).

Married puts are one of the most effective “cheap” forms of insurance, and they’re exactly the reason the options market was originally created – to allow you to hedge your bets.

YOUR ACTION PLAN

There’s only one place you’ll find strategies like this on a regular basis… The War Room. In fact, my partner, Bryan Bottarelli, uses a similar strategy to help War Room members win no matter what direction a stock moves post-earnings – as long as it’s a big move UP or DOWN.

Today we closed two big overnight winners on Qualcomm (QCOM) and Paramount (PARA) for gains of 44.57% and 104.42%, respectively! And we currently have a 74% win rate in 2023. For a limited time, we are guaranteeing you’ll receive 252 winning trades in your first 12 months of membership.

To start winning off big earnings moves… click here to unlock The War Room.