When the Nasdaq drops more than 5% in a day, it’s easy to freeze, or to feel like you have to guess the next move to make any money.

Pros don’t get guess…

Chaos and fear is what they feast on. Sounds sadistic but the reason is they find mispricings in the market that almost never occur. 

When fear is driving option prices instead of logic, most of them get crazy expensive. The edge is finding the ones that didn’t.

This week, I found one in DraftKings (DKNG) ahead of earnings. I thought the stock would do a little better than it did.

And it went the other way, hard.

But the trade still paid for itself and then some.

I shot a quick video that walks through exactly how it works, down to the one move that turned the whole thing into a completely different trade.

Normally I don’t like an earnings trade. Watch this one and you’ll see why I made an exception.

Andrew Giovinazzi