Make +5% overnight in a single stock

[Bob Rowshan]

Quote from rcn10ec:

Hey Bob,

Would buying options on the stocks you recommend be in order or do think buying or selling the stock outright is best?
By the way thanks for sharing, rc

rc, a very interesting question. I have friends who like to follow along w me , but do not want to expose themselves as I do, so they trade the options instead. And the results are that they are usually disappointed. It seems that the stocks I trade have high premiums along w high volatility, so even if i'm right and the stock moves favorably +5 pts, the options do not really increase in similar value where they can say they made out well.

To me, the best way to get max bang for the buck, you need to trade the stock. Just trade alittle, that's a hedge. Nothing wrong w 100 shares to get you going.

 

[blackchip]

Interesting thread.

What about buying the stock and selling the option around your target?

So if the market inflates the option prce pre earnings the stock moves up and the option price stays about the same. If the stock goes against you then you have some cushion.

 

[Bob Rowshan]

Quote from blackchip:

Interesting thread.

What about buying the stock and selling the option around your target?

So if the market inflates the option prce pre earnings the stock moves up and the option price stays about the same. If the stock goes against you then you have some cushion.

Interesting point. This sounds like a solid strategy but it would prevent me from hitting home runs, which is sometimes the case and we don't want to take that away from the equation. I say "make +5%" overnight, but sometimes it's really +10% or even +15%. If I were to sell options against it i would be capped, and thus deprived of the grand slam. Going forward, maybe you want to offer on this thread a possible option to sell against the stock and we'll discuss.

Anyway, i'm feeling benevolent today. This board has just given me so much damn love I want to give back now! This is what I have in mind. Rather than me just giving out tickers to play pre-earnings, I welcome others adding their own pre-earnings tickers on this thread (must be a high cap stock!), and we'll debate why it is/isn't a good choice as an earnings play. Here's everyones chance to pick my brain!

 

[Bob Rowshan]

GE = high cap

no post symbol, no discuss

 

[Bob Rowshan]

Hi. My name is Bob. Here are some stocks that report earnings this upcoming week.

mon: etn
tue ebay, ibm, jpm
wed cof, mer, goog, isrg
thurs c, cat, slb

You can make alot of dollar$ trading these stocks well this week. I'd welcome insights from others about how to maximize profit on these plays.

 

[Bob Rowshan]

Quote from Bob Rowshan:

Hi. My name is Bob. Here are some stocks that report earnings this upcoming week.

You can make alot of dollar$ trading these stocks well this week. I'd welcome insights from others about how to maximize profit on these plays.

Sorry, the list should read:

mon: etn
tues intc, mtb
wed ebay, ibm, jpm
thurs cof, mer, goog, isrg
fri c, cat, slb

 

[Bob Rowshan]

In the early part of the week, mtb, ebay & ibm look to be stocks itching to make large moves. Any thoughts?

 

[Bob Rowshan]

Quote from Bob Rowshan:


mon: etn
tues intc, mtb
wed ebay, ibm, jpm
thurs cof, mer, goog, isrg
fri c, cat, slb

I $ee lots of dollar$ to be made thi$ week playing these stocks. I could just give out my trades, but how can anyone learn from that? I suggest those who are interested in profiting from these earnings trades post here as a dialogue is a much better way to understand how to partake in the ample rewards of earnings.

 

[Term]

ISRG will be the most interesting one for me to watch. Growth stock + in the middle of it's business cycle. If they miss it could be bad.

 

[Bob Rowshan]

Quote from Term:

ISRG will be the most interesting one for me to watch. Growth stock + in the middle of it's business cycle. If they miss it could be bad.

Thank you Term! If isrg were reporting tomorrow, based on the technicals, I would make a large bet against it. Even if they beat, which they always do, that stock is setting up for a fall. Don't know what the technicals will say come thursday, so we have to wait a few more days and revisit it.