A big intra-day reversal yesterday and a strong pre-market has the S&P poised to possibly break through a former support level. We're likely to see more choppiness as bulls and bears duke it out. With the Power Gauge ratio remaining under 1 and the technicals all flashing red, we're remaining on the sidelines as far as initiating new trend trades.
Earnings season presents a plethora of speculative earnings trading ideas. One we like is ATHN. With it's Very Bearish Power Gauge rating and very bearish financial metrics, the stock could have more downside when it announces earnings. We like using options because of the ability to control risk and take advantage of implied volatility skew which favors selling the front month (expensive) options and buying the back month (cheap) options in a calendar trade. AA is putting on a Double calendar to protect against an upside surprise. I'm going with a directional calendar and making a downside bet. Here is my trade. BUY +6 CALENDAR ATHN 100 (Weeklys) MAY1 14/APR4 14 137 PUT @.71 LMT [TO OPEN/TO OPEN]
Earnings season presents a plethora of speculative earnings trading ideas. One we like is ATHN. With it's Very Bearish Power Gauge rating and very bearish financial metrics, the stock could have more downside when it announces earnings. We like using options because of the ability to control risk and take advantage of implied volatility skew which favors selling the front month (expensive) options and buying the back month (cheap) options in a calendar trade. AA is putting on a Double calendar to protect against an upside surprise. I'm going with a directional calendar and making a downside bet. Here is my trade. BUY +6 CALENDAR ATHN 100 (Weeklys) MAY1 14/APR4 14 137 PUT @.71 LMT [TO OPEN/TO OPEN]
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