From The Director: Tim has graciously offered to work together with me to develop charting tools that can aid the testing and design of new pre and post earnings approaches in using options to make profitable investing strategies.
Other services have benefited from using past data (both options and underlying data) to generate probabilities for certain movements in underlying stock. We can utilize these probabilities to generate option strategies, backtest the same strategies, and offer a framework wherein we trade these strategies prospectively, which can aid the keen investor.
None of what we discuss here should be construed as a trade recommendation or advice, but rather look at this tutorial as a tool you can use to improve your trading. (more…)
Strengthening bond prices. Surging oil. Strong equities. Grumble. Today is one of those “days to endure” for me. Ah, well. Here’s one idea to share: fallen angel Chipotle, which even with the recent bounce is still 60% off its peak. What we have here is a consistent series of lower lows and lower highs: the very definition of a downtrend.
I have an extremely cool new feature for you SlopeCharts folks out there: earnings dates charts. This will be of particular interest to you options traders. Allow me to explain………..
What we’ve done is merged together historical stock data with earnings announcements so you can see how a stock behaves as it approaches its earnings day. By default, we show you every day for twenty days in advance of earnings, as well as the day of and the day after earnings (you can change how many days via a dropdown). Using it, as with all things SlopeCharts, is simple. Just choose the Earnings Dates item from the new Chart Mode menu item:
There are plenty of things I like about a market like the one we are in right now, which is one of unchecked pandemonium.
There’s the profits, of course. It’s really gratifying to see my assets grow so swiftly.
The vindication of being right feels good, naturally. Having virtually every single prediction unfold as reality so swiftly is like a tall drink of water in the desert compared to the past nine years. I have 73 different short positions, and every last one of them is in the green (some of them massively so).
And since my trading life is tied directly to my little business, I get “icing on the cake” by having subscriptions to Slope PLUS go roaring higher.