In this pre-recorded segment of From Theory to Practice, Dr. Jim Schultz discusses approaches to earnings trades while outlining his upcoming NVIDIA trade. He emphasizes that earnings events offer tradable opportunities because they occur quarterly, represent binary events, and feature high volatility environments.
Dr. Jim recommends beginners stick with defined risk strategies like vertical spreads and iron condors before attempting undefined risk strategies such as short puts or strangles. He distinguishes between front-week trades (offering quicker results) and regular 45-day cycle trades (providing more gradual outcomes).