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Finance PhD: "Move your money in 2021" | ||||||||||||||||||||||||||||||||||||||||||||
As you may know, the Volatility Rush Strategy is perfect for stocks whose implied volatility (IV) tends to shoot up in the days and weeks leading up to their earnings announcements. | ||||||||||||||||||||||||||||||||||||||||||||
The goal is to buy an at-the-money straddle while the premium is cheap. | ||||||||||||||||||||||||||||||||||||||||||||
As the earnings date approaches, the IV should increase, making your straddle profitable. | ||||||||||||||||||||||||||||||||||||||||||||
However, be aware that you'll need to close your position before the announcement comes out in order to maximize your profit potential. | ||||||||||||||||||||||||||||||||||||||||||||
That's because once earnings are released, IV will fall dramatically, which will greatly reduce your opportunity to profit on the trade. | ||||||||||||||||||||||||||||||||||||||||||||
To your trading success, | ||||||||||||||||||||||||||||||||||||||||||||
Hiral Ghelani | ||||||||||||||||||||||||||||||||||||||||||||
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P.S. One of the easiest ways to profit from the stock market is to trade around Earnings Announcements. All our trading services are based on Earnings (Pre-Earnings, Into-Earnings and Post-Earnings). | ||||||||||||||||||||||||||||||||||||||||||||
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StockEarnings is a research service not owned or managed by registered brokers and therefore this site does not make any investment recommendations. The information provided from StockEarnings is not guaranteed as to the accuracy or completeness. Neither StockEarnings, its principals, or publishers, are liable forany losses or damages, monetary or otherwise, that result from the content and services of StockEarnings. Each member of StockEarnings chooses to do trades at their sole discretion and risk. StockEarnings is not responsible for gains/losses that may result in the trading of these securities. | ||||||||||||||||||||||||||||||||||||||||||||
Wednesday, January 27, 2021
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