By Rachel fox of FoxOnStocks.com

Last week, the market was popping like crazy with positive earnings in AMZN, CMG, SBUX and others, while there were a few downers like YHOO and AAPL. Many traders did great with the earnings of last week while many had a little trouble with AAPL (ugh). 

BUT because I had a pre-defined risk trade from buying a vertical call spread, my losses were capped and all was ok. I like doing those pre defined risk/reward trades when it comes to earnings. It’s a great way to stay engaged with these fun earnings plays while staying protected from too much downside risk.

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