I am not critizing RM's approach and feel everyone has to have an approach but why would anyone trade before earnings? Isn't this gambling? RM could be 10/10 on his picks and I will never ever follow his picks and trade a stock before earnings. Thiago.
in thoery it shouldnt be faded...maybe a bit at open but should run up 'till session end...maye closin' up 13-15%.
Ooops! Missed that one. http://finance.yahoo.com/q?s=crm Up 13% afterhours. Hope you didn't actually pull the trigger on this. :eek:
Obiously, he's not just trading on simple information he has a lot more info on whats happening, maybe options/ instutional action / price action / etc.. Not easy to know, but definately very detailed to the T , where he can bet 50k short shares on into a rising market.
well i went in with a small long 30 straddle (5 august 30), plus a bunch of august 25 puts. hopefully the price will hold or go higher from market open, so I can sell my calls. Then second (haha) hopefully the market will realize quickly this stock isn't worth much, then fade it down all the way to 20 so I make out perfectly at options expiration. hahah... one can dream.. seriously though if it opens with some strength from where we're at, its a $750 loss at worst. Today's good call more than made up for that.
that would mean anyway trading based on insider info you know nothing about. Looks dangerous, doesn't it?
I agree on the surface it looks like gambling. I would be curious to know how RM manages the risk. How much do you risk for this kind of return?