Earnings season is underway.

And even though the stock market is still struggling, there’s great news — it’s not as bad as many expected.

The results trickling in are strong enough to hold up this new rebound for the stock market. The positive beat on lowered earnings expectations will keep investors’ nerves at ease.

But there’s one big problem.

These results only represent the first quarter of the year — January, February and March.

The economy wasn’t shut down until mid-March.

That means these results are not going to come close to what we see when companies start reporting second-quarter results later in July.

Once companies report earnings for the second quarter, we’ll gain insight on how badly the economic shutdown has impacted their operations.

But we don’t have to wait until the next round of earnings to take advantage of the stock market.

My Quick Hit Profits readers have locked in quick, double-digit gains over the last few weeks by trading on earnings.

And they’re not gambling on an earnings announcement. Instead, they’re using one of the most powerful options trading strategies to capture gains.

And today, I want to explain how you can harness the power of earnings.

Volatility Will Fuel Bigger Moves for Stocks

Most investors get excited about the big, one-day move a company experiences when it announces earnings.

But trading that move is nearly impossible. You may get lucky once or twice. But in the end, it’s a losing game.

It’s no different than gambling.

Right now, it’s extremely tempting to play this game.

Investors are not sure what to think. That will remain the case when the second-quarter results come out in July.

In normal times, companies are confident in the results. They use the performance they’ve seen to post an outlook for the year. We call this guidance.

But in this nearly impossible-to-predict environment, the number of companies issuing guidance for the year has been cut in half.

Analysts are taking note of this as they look to the rest of 2020.

And it’s resulted in the largest decline in S&P 500 Quarterly Earnings per Share (EPS) forecasts during the first month of each quarter.

The 28% plunge at the right represents the economic shutdown hitting the U.S. economy as we speak.

This represents the massive cut analysts have made to their earnings forecasts for companies. Their earnings expectations for the second quarter — which will be reported in July — are significantly lower based on the dire economic times.

The bottom line shows that investors have no idea how bad the impact will be. It’s too big and broad for us to have a clear view right now.

All that volatility will create even bigger one-day moves as investors are caught off guard — for better or worse — when companies report their second-quarter earnings.

Traders will be eager to place their bets. They hope to get lucky with one lucrative bet.

Now, I don’t like gambling with my money on earnings.

That’s why I developed a unique approach that thrives in times like these.

It’s a strategy that benefits from extreme volatility — and grabs huge gains after companies announce earnings.

My Earnings-Based System Grabs Gains in Any Market

I know it sounds like we’re missing out on big returns. But the opposite is actually true.

By waiting until after earnings are announced, we’re missing out on big losses. That’s because we can take advantage of consistent trends that develop after an earnings call.

I’ve been doing this for years.

And I’ve delivered at least one 100% winner, on average, to my readers — every single month.

It’s a remarkable system!

But with the volatility the market has seen, I think our biggest gains yet are just around the corner.

And history is on our side.

At the beginning of 2018, we saw a 10% correction in the stock market. Back then, I recommended closing seven triple-digit gains in a single day.

At the end of 2018, stocks experienced another correction and fell 20%.

A few months later, those recommendations I sent to my Quick Hit Profits readers netted them gains of 100%, 103%, 104% — and even 158%!

I’m expecting even bigger results this time around as the market enters a steeper correction.

And our portfolio is already heating up.

In the past few weeks, my earnings-based strategy has notched a string of winners. These include an 11% gain on Nike Inc. (NYSE: NKE)  in eight days and a 17% return from State Street Corp. (NYSE: STT)  in nine days.

We even notched additional gains of 22% on Roper Technologies Inc. in seven days and a 34% return on Tesla Inc. in five days.

In the coming months, we’re lining up even more gains, with much bigger results as the market remains volatile.

If you’re interested in learning more about this system, I’d like to show you a special presentation. It’ll explain all the important details of my powerful trading strategy.

You can check out this presentation my colleague Matt Badiali put together to give you all the details of my system. And if you like what you see, you have the option to jump into one strategy that can beat the markets at their most volatile.

Chad Shoop

Chad Shoop, CMT

Editor, Quick Hit Profits