Dynamic Wealth Report | October 29, 2014
This "IRS Exempt" Investment Has Paid Out For 121 Years Straight...
Forget gold. Stocks. Bonds. Real estate. And most every other investment you can think of. This secret account—long used by the World's elite—yields 5 times more than long-term CDs. 8 of the companies who provide these accounts have paid out, on average, for 121 STRAIGHT YEARS. But the government doesn't want you to know about this program.
Click here to find out why...
How To Profit Off Of Bad Earnings
By Gordon Lewis, Options Trading Research
 It's earning season, so you know what that means… lots of big moves in individual equities. And this time around, there's added volatility in the market due to the recent selloff. It seems like earnings misses are causing larger than normal downward gaps.
As options traders, we know big moves can be very good if you have the right trade on. However, predicting earnings misses and downward gaps is never an easy task. Even the pros hardly get it right.
Fortunately, there's a better way to profit off this scenario.
Here's the thing…
Options give us the ability to make savvy trades AFTER an earnings miss.
You see, it's pretty common for a stock to get oversold after it misses earnings. Especially in a more volatile environment (like we're in now), investors are quick to dump companies with any sign of weakness. They're all too happy to pull the trigger.
Now, you may be thinking you could just buy the stock outright in that case. Sure, that could work. Or, you could buy calls and hope for a rebound. That may also work out.
However, these methods may be flawed. Of course, we know the advantages of options over stocks. But what about long calls? Why not use them?
The problem with long options is timing can be difficult. You either have to pay up for time value, or gamble on a quick move. Sometimes, on an earnings miss, the rebound may not occur quickly enough for long options.
That's why it makes sense to sell puts instead.
With a put sale, you aren't betting on a big rebound, you're just betting the stock is done selling off sharply. That's a much easier bet to make, with the odds in your favor. And perhaps more importantly, you'll be taking advantage of the extreme volatility.
When a stock gaps down, volatility shoots higher. It allows traders a chance to sell very expensive puts. And, as soon as the stock stops falling, that volatility vanishes. Your short puts will be winners almost immediately.
Now, selling puts isn't for everyone. Plus, you have to have a margin account. But, if your account is set up for option selling and you're willing to take on the risk, earnings season is a great time to profit off of put selling.
Yours in Profit,
Gordon Lewis
| | | | | | Copyright 2014 Hyperion Financial Group, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This email may only be used pursuant to the subscription agreement controlling use of the Dynamic Wealth Report website and any reproduction, copying, or redistribution of this email or its contents, in whole or in part, is strictly prohibited without the express written permission of Hyperion Financial Group, LLC.
If you purchase anything through a link in one of our emails or from a link on our website, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything.
LEGAL DISCLAIMER: Neither Hyperion Financial Group LLC nor any of it's employees, contractors or officers are registered investment advisors or a Broker/Dealer. As such, Hyperion Financial Group, LLC does not offer or provide personalized investment advice. Although Hyperion Financial Group, LLC employees and contractors may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation. Nothing in this report, nor any communication by our employees or contractors to you should be considered personalized investment advice.
Owners and writers may have positions in the securities that are discussed. However, no associated employees or contractors may intentionally engage in any transaction that directly or indirectly competes with the interests of our subscribers. We accept no compensation from any companies mentioned in our reports.
Past performance is no guarantee of future results. All information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell any security. All opinions, analyses and information contained herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. Investments recommended in this publication should only be made after consulting with your financial advisor. | |
No comments:
Post a Comment
Keep a civil tongue.