rc, a very interesting question. I have friends who like to follow along w me , but do not want to expose themselves as I do, so they trade the options instead. And the results are that they are usually disappointed. It seems that the stocks I trade have high premiums along w high volatility, so even if i'm right and the stock moves favorably +5 pts, the options do not really increase in similar value where they can say they made out well. To me, the best way to get max bang for the buck, you need to trade the stock. Just trade alittle, that's a hedge. Nothing wrong w 100 shares to get you going.
Interesting thread. What about buying the stock and selling the option around your target? So if the market inflates the option prce pre earnings the stock moves up and the option price stays about the same. If the stock goes against you then you have some cushion.
Interesting point. This sounds like a solid strategy but it would prevent me from hitting home runs, which is sometimes the case and we don't want to take that away from the equation. I say "make +5%" overnight, but sometimes it's really +10% or even +15%. If I were to sell options against it i would be capped, and thus deprived of the grand slam. Going forward, maybe you want to offer on this thread a possible option to sell against the stock and we'll discuss. Anyway, i'm feeling benevolent today. This board has just given me so much damn love I want to give back now! This is what I have in mind. Rather than me just giving out tickers to play pre-earnings, I welcome others adding their own pre-earnings tickers on this thread (must be a high cap stock!), and we'll debate why it is/isn't a good choice as an earnings play. Here's everyones chance to pick my brain!
Hi. My name is Bob. Here are some stocks that report earnings this upcoming week. mon: etn tue ebay, ibm, jpm wed cof, mer, goog, isrg thurs c, cat, slb You can make alot of dollar$ trading these stocks well this week. I'd welcome insights from others about how to maximize profit on these plays.
Sorry, the list should read: mon: etn tues intc, mtb wed ebay, ibm, jpm thurs cof, mer, goog, isrg fri c, cat, slb
In the early part of the week, mtb, ebay & ibm look to be stocks itching to make large moves. Any thoughts?
I $ee lots of dollar$ to be made thi$ week playing these stocks. I could just give out my trades, but how can anyone learn from that? I suggest those who are interested in profiting from these earnings trades post here as a dialogue is a much better way to understand how to partake in the ample rewards of earnings.
ISRG will be the most interesting one for me to watch. Growth stock + in the middle of it's business cycle. If they miss it could be bad.
Thank you Term! If isrg were reporting tomorrow, based on the technicals, I would make a large bet against it. Even if they beat, which they always do, that stock is setting up for a fall. Don't know what the technicals will say come thursday, so we have to wait a few more days and revisit it.