Our bearishly wagered CME earnings trade worked out in the direction of a VERY BEARISH Power Gauge rating. While the Merc's actual earnings met Wall Street expectations, the stock has sold down the last couple of days as valuation metrics, price volume activity and analysts' forward outlook have helped keep the stock price suppressed. The collapse in implied volatility once news is delivered factored into our profits too. We're going to try to get out of our OUT OF THE MONEY bear call spread tomorrow (Monday), with 5 days left to expiration of our weekly options. Here's the closing trade, which if successful, will result in a quick $200+ round trip trade profit for our REAL MONEY account. BUY +6 VERTICAL CME 100 (Weeklys) MAY2 14 71/73 CALL @.20 LMT [TO CLOSE/TO CLOSE] (See last week's blog entry for the set up)
Not counting my chickens here until I'm out.
I have been offering a one hour private lesson on how to trade vertical credit spreads or calendars through earnings for anyone who commits to a one year subscription to Chaikin Analytics. This is an advanced option strategy that I know well, but have only recently been using it to "game" earnings announcements. It's a high probability strategy, where the opportunity for profits relative to the risk is very, very attractive. But it's not something I'd recommend that a novice options investor dive into without mastering basic calls and puts strategies first.
Honestly, I am not generally a speculative trader, but our success with real money has been dramatic. This spring, we've replicated last Fall's success in our paper account during earnings season The win rate is really something, and I will use Chaikin Analytics to place earnings bets as a regular part of my investing strategy moving forward. I did a seminar with Marc Chaikin last fall during which I announced a 30/33 win rate on earnings bets as an experiment. I'm convinced ths app gives me an edge! I will use options to define risk so that I can manage the unpredictable nature of trading on company news.
Not counting my chickens here until I'm out.
I have been offering a one hour private lesson on how to trade vertical credit spreads or calendars through earnings for anyone who commits to a one year subscription to Chaikin Analytics. This is an advanced option strategy that I know well, but have only recently been using it to "game" earnings announcements. It's a high probability strategy, where the opportunity for profits relative to the risk is very, very attractive. But it's not something I'd recommend that a novice options investor dive into without mastering basic calls and puts strategies first.
Honestly, I am not generally a speculative trader, but our success with real money has been dramatic. This spring, we've replicated last Fall's success in our paper account during earnings season The win rate is really something, and I will use Chaikin Analytics to place earnings bets as a regular part of my investing strategy moving forward. I did a seminar with Marc Chaikin last fall during which I announced a 30/33 win rate on earnings bets as an experiment. I'm convinced ths app gives me an edge! I will use options to define risk so that I can manage the unpredictable nature of trading on company news.
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