We are currently right in the heart of Earnings Season, and if early results are any indication, it is going to be a blockbuster one indeed. So far, we have seen stocks outproduce the predicted moves in impressive fashion. On today's Free Trading Demonstration Webcast, we looked at three unique types of trades, all of which have been performing excellently in recent weeks.
Here is an example of one of the trades we are following this week from our Monday Live Trading Class:
Boeing (BA)- 340.68 at 3pm ET on Monday
Earnings: 1/31 Before Open
Priced In Move: 17.80
Buy February Week 1 350/352.50 Call Spread for $.80 Debit
Profit Potential: $.1.70
Break Even Point: 350.80
Exit: Hold to Expiration
Asset Allocation: 2 Units
On the Live Trade Exits Class tomorrow, we will exit this and all trades placed this week. To join us, please click on the registration link to the right of this Blog on this page.
Also, we will be starting a Boot Camp Training Series next Tuesday. If you are interested in joining us for this, please email us at Support @ETNtrade.com so that we can give you the details to enroll.
The Holidays are upon us and many people are busy hosting guests, spending time with family, shopping for those bargain deals and putting together their New Year's Eve plans as well as resolutions. However, as hectic as things may be, DO NOT neglect your portfolios.
If previous years are any indication, we may see a bit of a selloff in the final week of the year. This is often due to profit/loss taking by traders looking to report them on their 2017 taxes. They then often buy right back in after the first. Last year, we saw a dip in the Dow heading into the final trading days followed by a nice gap up after the 1st. I see no reason for us to expect anything different this year.
Today, in our final trading session of 2017, we looking at trade on GOOGL, DIA, GS, JNJ, AMZN, T and others. We used past performance as a high indicator of this week's potential outcome, combined with technical indicators to justify the moves.
As you are cleaning up your homes after the Holidays, make sure you do not neglect cleaning of your fiscal home as well. As always, we are here to help.
Join us this week for a free Live Trading Class, where we will demonstrate the incredible power of Option Spread Trading, take a look at how we did this past year, and set our sites on specific opportunities heading into 2018.
As we officially enter into Quarter 3 Earnings Season this week, and are currently sitting at an all-time high in the Markets, we must prepare ourselves for what is likely to be a very interesting, volatile and profitable month of trading. If you are not familiar with the ETNtrade style of trading, you may be surprised to see that we primarily use weekly expiration options, out-of-the-money spreads and in many cases, cover both possible directions the stock may move. While many Traders struggle to find a consistent statistical advantage when trading during Earnings, ETNtraders are very comfortable with our approach, our simple analysis and calculations, and the trades we will profit with from week to week.
So, what is the secret sauce that allows ETNtrade Members the opportunity to make 100-300% ROR in 2 to 4 days? It all boils down to a few simple calculations that allow us to make important decisions on what we think the stock will do, and therefore what strikes to use, based on what the experts reveal to us. It is actually a very simple process, but it takes practice and patience to master. Let me give you an example of this type of trading style:
On Wednesday of last week, we identified that the market expected WFC to move approximately $1.17, or 2.1% by Friday at close. Now, it did not say that it was to go up or down by that much; it simple stated that they expected it to move either up OR down by 2.1%. So, with WFC at 55.50, we positioned ourselves in a trade that allowed us to not lose our max risk as long as the stock moved only $.50 either way, break even if the stock moved $1.00 either way and max 100% ROR on our investment if it moved $1.50 either way. Think about that for a second… As long as the stock does what the Professionals think it will, we make money! That is a perfect scenario.
So, what happened? WFC ended the week at 53.69. The trade returned us 100% on our investment (we put 4 units on the trade, or 4% of our portfolio). So, we made an overall 4% return on our portfolio in TWO DAYS. Annualize that one.
In my humbled opinion, if you are not trading this way, you are gambling. We have been proving these techniques to be profitable year after year since 2009. We will be hosting a 2 Week Training Series in the coming weeks, so if you are interested in joining us for that, make sure to sign up for the upcoming free introduction to ETNtrade webinar on the right of this page. If you have any questions, of would like to discuss opportunities in becoming a Member, please feel free to ask. You can email me at Dave@ETNtrade.com.
I look forward to trading with you all in the near future. Let’s finish 2017 with a bang!!!