I like to sell premium but there are also times that I like to buy options and pre-earnings can be a good time to do so, especially with volatility being so low. Running some scans I happened across $ITW that has formed a very tight wedge and the Bollinger Bands are ready to explode. Earnings
Tag: earnings
Earnings are a great time to look for some quick and explosive moves in some names and then structure an option strategy around that to possibly profit from such a move. Digital River $DRIV has earnings on 11/3 and has been taken out behind the wood shed lately as Symantec ($SYMC) said they would not
I love short squeezes and typically look to profit from them as they happen. However, I don’t like to take a directional position through earnings but this is where some of the best squeezes can occur. Take Equinix, Inc. ($EQIX) as an example. This small cap technology company has been in a great trend since March and
Earnings are typically an excellent time to “place your bets” and I prefer to do so via options. One of the most common option plays pre-earnings is the straddle or strangle where a put and call are purchased and whatever that net debit is is how far beyond the strikes the stock needs to move
It appears as though the bad news for our economy is falling on deaf ears as the reports this morning were less than favorable. New home sales are down 40% from last year and down 69% from the all-time high reached in July 2005. October durable goods orders plunged by a larger-than-expected amount, Chicago manufacturing
What we saw today in the last hour or so of trading is an example of a short cover rally. As soon as the S&P broke the morning highs, the buying to cover ensued. That is a logical place to put both orders to buy to get out of a short and buy to get
Narrow Bollinger Bands
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