4 Steps to a 100% Return Overnight by Investing in Options. Believe It or Not.

You may think that I am kidding. But I have already shown you how. Please read my success story here.

Why the premium for the options of DLB and PCLN increased by 100% overnight? The answer these two companies were reporting earnings on Nov 11, 2007. The two companies reported earnings that beat the analyst's estimates and the stock price of these two companies gapped up on Nov 11, 2007. As a result, my previous out-of-the-money options became in the money and the positive intrinsic value makes the value of DLB and PCLN options double over night.

Four steps.

Step 1: Check which companies are going to report earnings after market close today and before market open tomorrow. You can do so by checking the earnings calendar on my homepage (left panel).

Step 2: Identify those winning trades. To buy put options, you need to follow a 3-steps method.

Step 3: Buy to open the options of those companies you have identified in step 2 before the market close today. You may read "How to Determine Strike Price?"

Step 4: Sell to close the options you have purchased after the market open tomorrow.