Anyone into split/earnings plays? I have been very fortunate in my split plays.I am 9 of 9 since June 15th However it seems to me that earnings are eluding me for some unknown reason. I always sell my positions prior to earnings coming out using stop losses. My question is besides recommendations and technical indicators what else should I be looking for to capitalize on these plays. By the way I only trade options on these plays.
TAKE CARE OF YOUR LOSERS AND YOUR WINNERS WILL TAKE CARE OF THEMSELVES.
Posted by Machiavelli on :
if the earnings rumors are positive then go long and sell on the day of the earnings if not the day before (the stock should steadily be going up leading up to the day earnings will be announced).. if the earnings rumors are negative go short (opposite.. the stock should steadily be going down and you want to buy back the day of earnings if the rumors turned out to be true and the stock tanks because of it)... but then again your trading options so if positive buy Calls if negative then buy Puts and sell them day before earnings comes out ... you want to buy or sell from or to "dumb" money... Buy on rumor and sell on fact (or opposite for selling short) ....
Posted by options on :
This is how I have been playing earnings for awhile now.Do you know of any good sources for earnings recomendations? I have been with about 5 different services over the last year and I am now down to 2 that I am profitible with. Always looking for more.
Posted by Machiavelli on :
never go with services.. always do your own DD... like i said.. look for stocks whose earnings are at least 2 weeks away....