I love earnings season and it starts Monday so I’m busy looking at charts and chains. One of my favorite scans is looking for stocks that are in a narrow bollinger band and looking for a catalyst to break them out. Earnings are a perfect time to enter trades that profit from moves in stocks and some strategies are buying strangles and buying ratio spreads. Some of these names may “run” into earnings so perhaps an ATM option would be good to buy and then sell right before earnings. The choice is up to you, just make sure you define your risk. Here’s a few names that I found in the scans section of the site.
Narrow Bollinger Bands
- Post author:Darren Miller, Ph.D.
- Post published:Saturday, April 10, 2010
- Post category:Commentary