AI
Thursday, April 01, 2004 5:39:37 PM
EARNINGS PLAYS in place now through April 8 and beyond.
Many of them were already picked up like DNA (only calls so far up substantially) others are being straddled (RIMM 7th) with gains locked in along the way TASR (April 19). We are watching them carefully on 5/60 minute charts while watching the futures and at least one indicator (usually the stochs or CCI and climactic volume spikes (both end of day and intraday) The most important are the support/resistance areas both on the intraday and 60 minute or daily chart. Its in these charts we see the potential for more than just a long term daytrade. Fibonacci retracements and multiple time frame charts so traders can see the rationale of the trade and not just chasing whatever happens to be most active for the moment!
VOLUME is as important intraday as it is END OF DAY but REVERSAL PERIOD TRADING goes hand in hand with volume.
VOLUME as an indicator
Its always important to hedge any plays THROUGH THE REPORT, and to PLAY THEM OUT from Phase I to Phase III otherwise you end up buying the news right before a pullback when pros are selling short.
Missing the report is a shame, and its worth the effort we make to capture the gains. Virtually no one picked up SCHN the way we (that I know of) through earnings (same as the SUPG play). SCHN was played for 11% gain and also some shorting in the past 2 sessions with a final straddle like the gild on the lily.
We are in Phase I ("anticipatory upswing" for much of them. Upside in the stock and the option calls. The earnings runs will continue through Monday and we're tracking them like the Kentucky Derby (play by play action with INTRADAY CHARTS and updates)
Phase II will begin just in front of earnings when we decide the straddle/strangle . IMPORTANT: We are not all that particular what the strike price is because we are only holding up till expiration at most and throught he report at the least. A BIG MOVE in either direction will take the entire option no matter what the strike price. If you don't hold SOMETHING through earnings you do miss much of the entree and end up with just a few appetizers
Phase III The gap play or the short/long after the report. Yep I do expect to be shorting SCHN tomorrow just as we shorted BBBY today however with BBBY it was easier.
Any one of these phase should not be missed because you are cutting your gains to mere pennies instead of the multiple gains in DOLLARS.
Many of them were already picked up like DNA (only calls so far up substantially) others are being straddled (RIMM 7th) with gains locked in along the way TASR (April 19). We are watching them carefully on 5/60 minute charts while watching the futures and at least one indicator (usually the stochs or CCI and climactic volume spikes (both end of day and intraday) The most important are the support/resistance areas both on the intraday and 60 minute or daily chart. Its in these charts we see the potential for more than just a long term daytrade. Fibonacci retracements and multiple time frame charts so traders can see the rationale of the trade and not just chasing whatever happens to be most active for the moment!
VOLUME is as important intraday as it is END OF DAY but REVERSAL PERIOD TRADING goes hand in hand with volume.
VOLUME as an indicator
Its always important to hedge any plays THROUGH THE REPORT, and to PLAY THEM OUT from Phase I to Phase III otherwise you end up buying the news right before a pullback when pros are selling short.
Missing the report is a shame, and its worth the effort we make to capture the gains. Virtually no one picked up SCHN the way we (that I know of) through earnings (same as the SUPG play). SCHN was played for 11% gain and also some shorting in the past 2 sessions with a final straddle like the gild on the lily.
We are in Phase I ("anticipatory upswing" for much of them. Upside in the stock and the option calls. The earnings runs will continue through Monday and we're tracking them like the Kentucky Derby (play by play action with INTRADAY CHARTS and updates)
Phase II will begin just in front of earnings when we decide the straddle/strangle . IMPORTANT: We are not all that particular what the strike price is because we are only holding up till expiration at most and throught he report at the least. A BIG MOVE in either direction will take the entire option no matter what the strike price. If you don't hold SOMETHING through earnings you do miss much of the entree and end up with just a few appetizers
Phase III The gap play or the short/long after the report. Yep I do expect to be shorting SCHN tomorrow just as we shorted BBBY today however with BBBY it was easier.
Any one of these phase should not be missed because you are cutting your gains to mere pennies instead of the multiple gains in DOLLARS.
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