It is UPB here, hope everyone is enjoying their weekend.
Join Me Sunday Night for a look at some potentially profitable l option trades.
I wanted to remind the Diamond members I will be having my “Look Ahead” tomorrow at 10:30PM eastern. I will have the link to the event posted about 25 minutes before the start at this link: http://www.
Last weeks class I covered all the big earnings. With COH up over $60 I called for a nice drop post earnings and that is exactly what happened. I said I’d be a buyer of GMCR calls, FSLR calls. GMCR went 30%+ the day after earnings and FSLR +27%. I also said I’d be buying MCP calls and RIG puts, both ended up going the other way and my MCP calls were with a bid at the open on Friday. I am certainly never 100% right or even 75% right when it comes to out of the money stock options. In this market you are right until you are wrong. It is that simple.
How many people were calling for the end of the world? ”Big Crash Coming!” “Load up on those PUTS!” Look at us now. The markets have defied all the naysayers. We are at three month highs. I remain as nimble as ever, and I am almost never in more than 3 option positions at a time. I help mostly puts this week and coming into Friday my lone call position was MCP, which suffered a tremendous drop. I have been getting over confident and with MCP I could have hedged my calls for a mere $90 with the $14 puts. Those puts I could have sold later on Friday for over $2,000. While I was right about MCP being a big mover post earnings, I did not play it that way. That is the joy of stock options. You don’t have to be right about which way a stock is headed, just as long as it gets a big move in short period of time…. which is why earnings trades offer some great opportunities. Tomorrow I will cover some chart set-ups, economic data, and potential earnings plays. I hope to see you there.
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