Sentences with phrase «volatility events»

Best to stay away from high volatility events like earnings releases if you're not planning on owning the stock for the long term.

These kinds of high volatility events are not good for covered call investors (too risky).

If you are going to hold the underlying stock across some anticipated volatility event (like earnings) then you may be better off writing an option that has more premium in it than the near - month option, as a defensive measure.

With the din of the August 24, 2015, volatility event still echoing with investors, the move strikes a welcome chord.

Interestingly, even though these kinds of high volatility events can occur with some warning, many online brokerages continue to suffer slowdowns or outages because of the trading volume.

«Now that the volatility event is over, investors will focus on the economic data and the fundamentals,» said Sameer Samana, global equity and technical strategist at Wells Fargo Investment Institute in St. Louis.

These options are likely to be called away if they are short term and there are no volatility events before expiration.

Earnings release dates are high volatility events and any option for an underlying stock that has an earnings release between today and expiration will be priced for earnings volatility.

you may end up holding the LEAP across several high volatility events (earnings, product or FDA announcements, etc), any one of which could move the stock down dramatically; and, while the shares may recover eventually, the LEAP holder may run out of time as the LEAP's expiration clock is always ticking

When trading a high volatility event that potential price move will be priced into the option, after the event the option price will remove that volatility value and the option value will collapse.

Even if in the short run, after a volatility event, stocks tend to do well, there may be more volatility events than just one.

Like other high volatility events, if this one doesn't come to pass then the stock could drop to below its pre-rumor price as disappointed investors dump the stock.

Those kind of high volatility events can wreak havoc in a covered call portfolio designed just for income.

Doing something (anything) different when a volatility event occurs undermines the credibility of the message that there's nothing new about it and nothing to do as a result.