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Option Strategies for Earnings Season

Buy a stock just before its earnings report is a bet: it can be highly profitable or devastating for your portfolio. You decide the risk you face. I always prefer to wait for the report, to compare their numbers with the estimates in EPS, sales, and guidance, review the conference call for some additional data and see the next day analyst's ratings, which usually increases or decreases their weighting and price target. And, of course, you can use specific options strategies during these events. Let's overview some ideas as to choose the right strategy. You need to know the following principles: -  A strategy that involves  long  options (been calls or puts) will typically  gain value as IV increases  and lose value quickly with IV decreases. - On the contrary, a strategy that involves  short  options (been calls or puts) will typically  gain value quickly with IV decreases  and lose value as IV increases. - During an earnings event,  the implied volatility IV of

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Enhance your entries with the Volume Profile

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Identifying Breakouts and False Breakouts

Breakout Traders.
After years of reviewing investing blogs, and sharing experiences and trading styles in chats with other traders, I'm sure that (one of) the most popular are the "breakout traders". This is a type of trader who uses technical analysis to identify high conviction brea…
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Gold and Airlines: attractive ETFs for next weeks

Gold is very attractive again.
Due to its fundamentals, Gold is a great option for the next weeks, given that its inverse counterpart, the dollar, may continue to weaken due to two certain factors: the approval, increasingly close, of the US stimulus bill and the lower trend in inflation. Its risk i…
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Nasdaq Ready for the Yearend Reversal

September ends and he does his usual job in the markets: being a bearish month, in this case correcting the excessive rise of the SP500 and Nasdaq, artificially driven by the Fed and the FAMAGs. And October may be a key month for the immediate future on Wall Street. Seasonally, that month is known …