It Could Be One of the Best Times of the Year for Traders...READ MORE
 | You're receiving this email because you are subscribed to Options Profits Daily,
if you no longer wish to receive these emails you can unsubscribe here. | |  | |
 | | It Could Be One of the Best Times of the Year for Traders | | | Earnings announcements deliver volatility that short-term traders can potentially benefit from. There is, as always, a reason for the volatility. Companies are announcing news and the information in the earnings announcements forces analysts to review their models.
Since many analysts use earnings as a time to update models, there is often more news after the official earnings release. That news, the changes in analyst opinions, is often followed by price moves. That is partly due to the fact that analysts at funds are making the same kind of updates and managers are acting on revisions, even if they aren't announcing their changes.
The price action that results from all this activity creates an opportunity for traders, as we explain in our recent article.
We highlight a strategy that can be particularly useful during earnings season. It protects the trader against large losses and in the example, we share in the article, the risk is limited to $190. The possible gain can be substantial even though the amount of capital at risk is not necessarily large.
Overall, this could be a strategy smaller investors find useful during earnings season since a trading opportunity can be identified almost every day with this strategy.
You'll find the details of the trade and the outline of the strategy in our latest article that is available right here.
| | YOU PROBABLY MISSED THIS: |  | | | | ` | |
Not sure the best way to get started?
Follow these simple steps to hit the ground running. | | | |
No comments:
Post a Comment