Placing earnings trades is a great way to increase your number of occurrences. However, there are often large moves associated with this announcements so playing them in a smaller account has the possibility of a large drawdown. Today, Tom Sosnoff and Tony Battista look at three different ways you can place an earnings trade and define your risk. The guys compare a 1 standard deviation Iron Condor, an Iron Condor collecting 1/3 the width of the strikes and a Chicken Iron Condor (collecting between 45% and 50% the width of the strikes). Tom and Tony places these three similar positions in underlyings that have been known to have large moves to see if there is any advantage to a specific strategy. They find out that when there are large moves in the underlyings, it is better to place your strikes closer and collect more, thus reducing your max loss and increasing your max potential profit!