The Strategy of Options Trading

THE WEEK

This week Earnings Announcements will be happening every day at a furious pace.  The financial` industry will be have the majority of the announcements this week and next week the technology stocks will be rolling out.  This is always a fun time to watch the Market.  It gives us clues about what the quarter may look like.  So far the Market is looking better than it has in a long time.  Money has flowed back in as traders gain more confidence.  The only wrecking ball I see right now is in two weeks the Feds will announce whether they are hiking up interest rates again. 

All week stock price went steadily up.  On Friday we saw a Bearish Piercing candle pattern but that was expected after a steady climb and hitting 52-week highs.  Some traders were taking profits.

LOOKING AHEAD

It is always hard to gauge the Market with so Earnings Announcements coming at us.  Those announcements are the wild cards because it is very difficult to predict how traders will react.  The herd is generally fickle.  Many times, there will be a great announcement and the herd will sell off.  I have seen the reverse happen with a buy in on a bad announcement.

HOW AM I DOING?

I am still having discussion with Charles Schwab who took over for TD Ameritrade.  They want to drastically change my trading status to professional trader with heavy monthly fees attached.  I exited all my positions and only traded one quick in and out on Thursday picking up a couple of 100 dollars.  If you don’t or can’t trade you don’t make money.  

Thursday’s webinar DEEP DIVE will be a fun one

Trading around Earnings Announcements