On January 7th of this year, an event took place that could change investing forever.
It's dragging a $1 trillion “shadow market” into the spotlight and multimillionaire trading legend Jonathan Rose promises to show us how to profit from it with some “Earnings Advantage Trades.”
The Teaser
Far from obscure, this “shadow market” is already being treated as a whole new asset class by Wall Street.
Jonathan Rose isn't a name we've heard before, but he's a veteran professional trader with nearly three decades of experience and a popular YouTube channel, Masters in Trading Live.
However, we have covered our fair share of trading strategy teasers, including Larry Benedict's “Skim Codes” Strategy and Jeff Clark's Breaking Point Strategy.
We're told this one has “nothing to do with AI, hard-to-read chart patterns, or identifying hot new stocks.”
In fact, we don't even need to guess which way any given stock is headed. Because we can make money either way.
Sounds almost like Jonathan isn't talking about public equities at all.
Indeed, it's quickly revealed that the “whole new asset class” teased at the start of the teaser is prediction markets.
Combined, the top two prediction markets, Polymarket and Kalshi, have now crossed $20 billion in monthly transaction volume, having grown 20x since early 2025.
Despite the dizzying rise, Bloomberg thinks prediction markets will continue to grow five-fold by 2030 and Jonathan calls them:
The biggest shift in market forecasting in decades
I don't necessarily agree, but where else can you bet on the color of Gatorade players are most likely to drink during the Super Bowl and make a buck off it?
The trading legend is already using prediction market data to sharpen his own trades and that's where the opportunity comes in for us.
Jonathan says “there's a way to use prediction market data to target bigger profits on our trades” and that's the technique he's going to show us.
The Pitch
Everything is revealed in a report called Three Earnings Advantage Trades to Make Right Now.
To get it we'll need need a subscription to Jonathan's trading research service, Earnings Advantage.
A one-year membership to Earnings Advantage typically retails for a cool $5,000, but for a limited time, it's being dropped to $2,000, with a 90-day money-back guarantee.
A Third Way to Trade
Everyone knows there's basically two ways to make money in the market.
By going either long or short.
But now with prediction markets cranking out all kinds of trading ideas, they are coming to be regarded as the third way to make money in the market.
As an example, Jonathan highlights how Polymarket ran a bet last December over how the Supreme Court would rule on Trump's tariffs.
The stock market was pricing the trade like they were sure the tariffs would hold. But that's not what the prediction markets were saying.
The trading volume on Polymarket indicated that people were less and less sure about a positive outcome.
Jonathan says “when probability moves but the price doesn't, that's information.” It indicates that a trade could be mispriced and a big reversal could follow as the market catches up.
After some digging, it was determined there were two ways to play this market misprint – solar and copper, as both had big ties to trade deals with China.
Two long trades were placed on a company called Sunrun (Nasdaq: RUN) and BHP Group (NYSE: BHP), on the presumption that tariffs being struck down would be a net positive for their stock prices.
In the end, this proved to be the right call, with a 151% return:
And a 189% gain:
Being locked in over the course of 19 days.
All of this was inspired by a Polymarket prediction, but that's not all there is to Jonathan's “Earnings Advantage Trades.”
As you can tell from the charts above, RUN and BHP didn't go up 151% and 189%, respectively.
So, how is ‘JR' juicing his returns?
Well, he's not just buying and selling stocks, he's also using options and further reducing risk by playing both sides of the trade.
It's all part of the bigger “Earnings Advantage” strategy that JR delves deeper into.
Revealing Jonathan Rose's Earnings Advantage
Besides the three trades teased in the report, on which no clues are provided, there's also a “time-tested, three-step setup” to any “Earnings Advantage” trade.
“Backtest” the Stock
This is all about drilling down into the data to find out “the average past move after earnings” for the stock we want to target.
The bigger the move, the better it is for potential profits.
Comparing Historical Moves to Options Pricing
If the options are pricing in a smaller move than we've seen after past earnings announcements, this indicates that the options may be mispriced.
For us, this is an optimal time to trade.
Building the Perfect Trade
This is the part where both sides of the trade are played.
Giving us a chance to “make money on big moves in either direction” and, importantly, defining the maximum risk before the trade.
The aim from all this activity is a minimum of six, $500 or more, trades per earnings season or at least 24 trades per year, with none being buy and hold, but rather in and out in 30 days or less.
Prediction Market Data + Clear Strategy = Earnings Advantage?
If you're a trader and you're not taking advantage of earnings season, it's like throwing money away.
These are the words of Jonathan Rose when talking about his proprietary “Earnings Advantage” strategy.
High profit potential, a low entry cost, and a turnaround time of roughly 30 days for each trade sounds good, but we must keep one cold reality in mind.
On average, around 90% of new options traders lose money.
As the old saying goes, knowing the playbook and running it effectively are two different things.
A low entry cost means precision timing along with the ability to execute and maintain profitable trades. In other words, cutting your losers and letting your winners run, which is more of a mental game than anything.
If you somehow manage to do all this, there's also the not-so-insignificant possibility of prediction markets being dramatically reigned in.
For all intents and purposes, prediction markets are primarily gambling platforms, rather than games of skill, unlike sports betting, so I can see calls for a ban growing and more states taking action against them.
That's the temporary “edge” that is supposed to give us an advantage in our trades.
Overall, JR doesn't give us any new info or backtest results to make us want to recommend his “Earnings Advantage” strategy.
Quick Recap & Conclusion
- Millionaire trader Jonathan Rose promises to show us how to profit from a “shadow market” with some “Earnings Advantage Trades.”
- The shadow market is the emerging prediction market and Jonathan is using it's data to try to gain an “edge” in the equity market.
- The entire strategy and more is revealed in a report called Three Earnings Advantage Trades to Make Right Now. A one-year membership to the Earnings Advantage trading research service is required to get it, which retails for $2,000 (normally $5,000).
- First, the average past move after earnings is determined, second, these moves are compared to what options are pricing, and third, put and call options are bought to make money on big moves in either direction.
- High profit potential, a low entry cost of $500 per trade, and a turnaround time of roughly 30 days is promised, but the reality is that 90% of all new options traders lose money.
Have you tried JR's “Earnings Advantage Trades“? Tell us about your experience in the comments.