"Despite a poor earnings report, DRI was actually up $11 in premarket." Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Dear Reader,, The market response to the Fed yesterday was quite odd. First, it opened higher heading into the Fed announcement. Then, the Fed said slower economic growth is likely and recession risks are increasing. Yet – the market actually rallied after the seemingly negative sentiment. That doesn't make a lot of sense. And this wackiness carried over into one of my trades on Darden Restaurants (DRI). Here's how it went down... On Thursday, DRI was due to report earnings (a key catalyst event), so I got positioned on an overnight strangle in The War Room. But get this... On Thursday morning the CNBC headline read... "Darden Restaurants sales disappoint as Olive Garden, LongHorn Steakhouse miss expectations." Ok, poor earnings, so that means Darden stock should be down in premarket, correct? Not in this case. Darden was actually up $11 in premarket trading despite the earnings miss. So logical, right? But since the overnight trade I placed on DRI was a "win-both-ways" trade, I still closed it for a 13% overnight winner that morning. That's why I love overnight strangles. They provide ample opportunity to capture gains on volatility in either direction. A few War Room members were in on this trade and rang the register. Here's what some of them had to say. | 
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