Right now the volatility trade after earnings in alibabathe options insider dow futures market hours

.

This is a slightly advanced option trade that starts three calendar days after Alibaba Group Holding Limited (NYSE:BABA) earnings and lasts for the 5 calendar days to follow, that has been a winner for the last 2-years.

According to NASDAQ, Alibaba has earnings due out 8-17-2017 before the market opens sftp binary mode. To replicate this back-test, the trade would open on 8-21-2017 near the market close and the position would be closed on 8-24-2017 near the market close, unless a stop loss or limit gain is triggered before hand.

Most of the trades we have examined have owned options, which is code for being "long volatility." Remember, option trading is volatility trading, whether we mean it to be or not gbp usd forecast. This time we will look to balance the trade positions with a trade that is short volatility.

For Alibaba Group Holding Limited, irrespective of whether the earnings move was up or down, if we waited three-days after the stock move, and then sold a one-week at out of the money iron condor (using weekly options), the results were quite strong.


This trade opens three calendar days after earnings were announced to try to let the stock find equilibrium after the earnings announcement.

And a note before we see the results: This is a straight down the middle volatility bet — this trade wins if the stock is not volatile the week following earnings and it will stand to lose if the stock is volatile.

The logic here is simply that after Alibaba does whatever it does after earnings, the stock will then fall into a quiet period for several days and this trade looks to benefit from that rmb usd exchange rate. We do however add an additional risk control with a 30% stop and a 30% limit:

This is it — this is how people profit from the option market — finding trading opportunities that avoid earnings risk and work equally well during a bull or bear market.

Trading futures and options involves the risk of loss rs to usd exchange rate. Please consider carefully whether futures or options are appropriate to your financial situation hockey shooting drills. Only risk capital should be used when trading futures or options funny jokes in urdu video. Investors could lose more than their initial investment.

Past results are not necessarily indicative of future results us market futures cnbc. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Mr binary number calculator. Gottlieb writes financial news for CML and also as a contributor to Yahoo! Finance, CNN Money, MSN Money, and before then for Marketwatch, Business Insider, TheStreet and Real Money text editor windows 7. He has become a staple in financial TV, often times seen on the Business News Network and CBC.

Mr. Gottlieb’s experience includes working as an option market maker on the NYSE ARCA exchange floor (CBOE remotely), as Managing Director of Client Services and Algorithmic Trading for Livevol, Inc, and as the Managing Director and Product Manager of Quantitative Research for GMI (now MSCI).

Ophir Gottlieb is inventor of the Forensic Alpha Model (FAM) and a co-inventor of Accounting and Governance Risk Model, both purchased by MSCI. FAM has been a celebrated achievement in artificial intelligence and quantitative finance that was introduced to world by the Rotman International Journal upon its completion.

Mr Gottlieb’s mathematics, measure theory and machine learning background stems from his graduate work at Stanford University and his time as an option market maker on the NYSE and CBOE exchange floors. He has been cited by various financial media including Reuters, Bloomberg, Wall St commodity futures market. Journal, Dow Jones Newswire and through re-publications in Barron’s, Forbes, SF Chronicle, Chicago Tribune and Miami Herald and is often seen on financial television.

All materials are found on open spaces of a network the Internet as freely extended and laid out exclusively in the fact-finding purposes. If you are what lawful legal owner or a product and against its placing on the given site, inform us and we will immediately remove the given material. The administration of a site does not bear responsibility for actions of the visitors breaking copyrights. abuzesite@bigmir.net

banner