In this episode, Paul discusses the hazards of trying to short a top stock pick just ahead of its earnings announcement. Intuitive Surgical (ISRG) provides a cautionary tale of just what can happen as it briefly dives below its 50-day moving average only to blast back up again. This is just the kind of shakeout move stocks often make before moving higher. Now, who knows what ISRG might announce in terms of its earnings on April 15th, but Paul suggests that if you think the stock will fall, buy put options rather than shorting a stock to give you unlimited potential and limit your risk. Better yet-- especially if its a top performer, like ISRG-- buy call options when it shows weakness. Paul also suggests buying call options on his top-rated stocks that are either getting ready to break out or in the process of bottoming out as a great way to boost your profit potential.
