Given the ability of earnings reports to catapult stock prices higher in a short period of time, the authors of today’s article state “It’s no wonder why options traders tend to salivate like Pavlov’s dogs during earnings season.” They acknowledge, however, that playing the earnings game successfully is not easy – which is why they outline what they believe is a better way for individual investors to capitalize on earnings season. For more, CLICK HERE.
With the economy reeling from the coronavirus pandemic, the Federal government has already passed a $2 trillion stimulus package, the largest such package in U.S. history, and discussions are underway regarding further stimulus. Meanwhile, options traders are considering the inflationary effects these stimulus efforts will have – and how they can capitalize on it. For one trade that speculators may want to consider, CLICK HERE.
“What goes up must come down” is a law of physics – and it’s also the basis of the trade idea outlined in today’s article. Specifically, this trade applies the “what goes up must come down” rule to market volatility, with the author noting that volatility mean reversion is “a predictable pattern that we can take advantage of as options traders.” For more on this trade that can be used to profit from market volatility (which there has been plenty of recently!), CLICK HERE.