Trading during Conference Calls

Discussion in 'Strategy Development' started by chs245, Feb 29, 2004.

  1. chs245

    chs245

    Hi

    how many of you are listening in on earnings (or other event) conference calls in order to trade on info release during the call ? Would like to hear from you and exchange experiences.

    OLiver
     
  2. ertrader1

    ertrader1 Guest

    NEVER NEVER NEVER, i break this rule once and a while, but, I try and stick to getting out of the positions or lightening the positions into any earnings/confrence calls.
     
  3. The stock ran up in anticipation of some soothing words. When the conference call began, the company's man repeated a previously issued press release, said no calls would be taken, and disconnected. It lasted about 2 minutes, including the obligatory "forward-looking statements disclaimer"

    The stock dumped about $4 in a few minutes.


    I think there is validity in buying a stock with bad news prior to a conference call as there is generally anyticipation the words will be soothing.
     
  4. chs245

    chs245

    i was more thinking about trading during the conference call. how often does it happen that management discloses new info on the call, which was not in the PR before ? An example would be MRVl last week. The stock dived after the press release regarding last quarter earnings, zoomed though nearly 10% in response to new info on the CC. Surely not such an unusual even, and very lucrative for those traders who spend some time to listen to these CC.


    OLiver
     
  5. cashonly

    cashonly Bright Trading, LLC

    I was thinking about that as well due to some action that occurs during the call. Some NYSE stock took a nice dump during a call the other day, but the symbol escapes me.

    Does it appear to be a promising tactic?
     
  6. chs245

    chs245

    i believe so.
    but you do not get that many trading opportunities.
    i would like to form a group of traders, each one taking care of one particular sector and alerting his fellow traders on opportunities during his CC. the problem is that this kind of strategy is very time consuming as you can't automate it. And that is probably wherein the opportunity lies.....!
    if anyone wants to join, PM me

    OLiver
     
  7. aegidus

    aegidus

    “how many of you are listening in on earnings (or other event) conference calls in order to trade on info release during the call ? Would like to hear from you and exchange experiences.“

    I have made money trading during conference calls, but the trades were in securities that I actively followed and I was able to recognize 'new' news immediately. Example... opportunity came during SanDisk's Analyst Conference. I took advantage of an announcement that was premature and bought in at $23+ and rode it to $29+ (swing-trader...."know what you don't know!")
    Aegidus
     
  8. gms

    gms

    I keep an eye on price and volume of some equities that are announcing, and see what happens after they announce, and trade in the direction of the move. They certainly move because of the announcement, and it doesn't matter what they announced.
     
  9. cashonly

    cashonly Bright Trading, LLC

    Is this a midday thing?
     
  10. gms

    gms

    No, but I don't see why one couldn't play the market reaction when the announcement comes.
     
    #10     Mar 10, 2004