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Trade Of The Week: Reporting Season trading strategies

February 10, 2021

Trade Of The Week: Reporting Season trading strategies

As we approach reporting season, technicals can become drowned out by the fundamental stock movements based on earnings surprises.

As we approach reporting season, technicals can become drowned out by the fundamental stock movements based on earnings surprises.

Trying to pick direction on individual stocks during reporting season can be very costly for some, and very profitable for others. But the reality is we do not know for sure what reporting season will deliver. 

Source: Implied Volatility

 

The implied volatility measure may provide hints on upcoming price action, and directionally neutral trading strategies like the straddle can be effective over this period. Brien Coram explains his reporting season strategies in this video from April 2020.

I do not have a technical view on how the market will behave after tonight and I will be waiting for confirmation through the coming week’s price action. There is one thing for sure though – it will move up, down, or sideways…

 

If you would like some more information on options trading strategies, please call 1300 805 795. 

You can also follow this link for a detailed tour of the Implied Volatility platform. Please note, we provide General Advice only. 

To try trading for yourself using the most powerful Options Trading technology in Australia, click here for a trial for our Implied Volatility platform

 

We wish you good luck with your trading, and as always if you have any questions, please feel free to contact our trading desk on (03) 8080 5795. Please note, we provide General Advice only. 

 

Past performance is not a reliable indicator of future performance. 

The opinions expressed in this article are our personal views. 

Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only trade if you are confident that you fully understand what you are doing. If you are thinking about acquiring a financial product, you should consult our Financial Services Guide (FSG) at www.reachmarkets.com.au first. 

 


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