Start the conversation
As I'm sure all of you know, I spend a lot of time poring over data and charts every single day looking for opportunities.
Of course, with earnings season now hitting a full swing, the opportunities really start to pop. There are a few important things to remember though.
First, if you're trading options ahead of earnings announcements, you're paying for it. I did an interview with TD Ameritrade's television network on Monday during which we talked Amazon ahead of its results this week. Side note: I think that the stock is heading for a breakout of $1,700 on its way to $1,600, but that's another story.
When asked about playing options on Amazon.com Inc. (NASDAQ: AMZN), I had to point out that you're paying a premium for this big name due to the wide prices and earnings forecasts. In other words, you're paying extra for uncertainty; that's how the options world works.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.