A Potential Double-Digit Gain Follows an Earnings Beat...READ MORE
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A Potential Double-Digit Gain Follows an Earnings Beat
Many individual traders look at low priced stocks for their trading opportunities. One reason is that the low price means they have little down side risk in dollar terms. The second reason is that low priced stocks are generally the ones that deliver the largest short-term gains.
One study looked at how low priced, or cheap, stocks performed relative to more expensive stocks. The study found that cheap stocks delivered more than six times the average return of the more expensive stocks in a typical quarter.
But large cap stocks could also deliver large gains in short periods of time as we explain in our latest article, which details a specific opportunity.
We explain how an options strategy can be used with low cost, often less than $200, no matter what the stock's price is. This small amount of capital controls 100 shares of stock which means the potential gains can be significant.
The result is that with the right strategies, it is often possible to find double-digit profit potential in large cap stocks. The rights strategies can also limit risk and in the article, we explain how this specific opportunity risks just $215 based on recent market prices.
The details of the trade and the strategy are in our latest free educational article that is available right here.
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