…low expectations (i.e., high put/call ratio, plus high short interest and a low "Buy" rating percentage) mean that a stock will not have to work as hard to overcome sentiment.

Such stocks are less crowded with speculators who are waiting for shares to go up, and thus have a greater potential to rally.

Make Impressive Profits Even When Earnings Disappoint

While buying or shorting stocks based on earnings should provide handsome returns, the real money can be made by buying call options on stocks that are due for a sharp move to the upside…and buying puts on those that are likely to disappoint.

I usually recommend options that due to expire within a month for earnings plays—the leverage provided by these short-term options can be dramatic if the stock moves sharply in the expected direction.

The sentiment they reveal can be amazing, especially when you're looking at the ratio of calls traded versus puts each day.

Additionally, when you see the options flying off the shelves in a normally quiet stock, it's impossible not to want to investigate the discrepancy and, perhaps, jump in on an opportunity that others may not be aware of yet!

Earnings season can provide stock movement, sentiment can determine direction, and options can provide leverage. Taken individually, each can be profitable. But combined in the proper way, the results can be both amazing and powerful for your portfolio. (Don't forget to check out: "The Best Way to Start Trading Options" and "Options: The Safest Way to Navigate the Market Today.")

There are dozens, if not hundreds, of opportunities to make five to 10 times the gains that you might make trading stocks by instead playing options. And these opportunities are present everywhere—not only during the "official" earnings season, but throughout the year.

Whether or not the companies or stocks themselves have a successful quarter, when you're armed with this information during earnings season, you'll be ready to take advantage either way and enjoy a profitable season of your own!

This is your invitation to double your money during the upcoming earnings season—sign up now for Chris Johnson's Earnings Edge and receive options advice EVERY DAY during earnings season…ABSOLUTELY FREE! Grab your front row seat—and start doubling your money! Click here now to get started.