Tag: earnings

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

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Illinois Tool Works Strangle (ITW)

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

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Digital River (DRIV) Ratio Spread

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

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Potential Earnings Short Squeeze

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

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RIMM Earnings Play

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

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Stampede?

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

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Classic Short Covering

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

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