Managing Our Qualcomm Call Options

Editor’s Note: Next week is Thanksgiving. Our offices will be closed to give our team some well-deserved time off. We will not be publishing the Weekly Options Corner next week. But be on the lookout for a holiday card from the American Investor Today team, plus a list of things we’re grateful for.

What are you grateful for this year? Email us at WeeklyOptionsCorner@BanyanHill.com for a chance to be featured in an upcoming issue. — Annie Stevenson, Managing Editor, Weekly Options Corner


Jumping into the trade may be the easiest part of trading.

The hard part?

Knowing when to get out…

Two weeks ago, we added call options on Qualcomm (Nasdaq: QCOM) to give you an example of the types of opportunities we have in my premium research service, Quick Hit Profits.

We stuck to the strategy of jumping in after a company announces earnings. This event is what I like to call my Profit Trigger.

It’s the signal I wait for before opening a new trade.

And the historical performance of the company also tells me what to expect and how to manage the trade once we’ve jumped in.

The bottom line: It’s all about the mispricing…

The Market Is Still Behind on Qualcomm

After analysts take a moment to digest the chaos that unwinds with an earnings announcement, they don’t immediately reflect the good news in the stock’s price.

Stocks can jump 5% or 10% in a single day after an earnings announcement. But even then, analysts may not have caught up to the mispricing.

While many investors think those quick one-day gains are their only opportunity to profit from an earnings announcement, the Quick Hit Profits strategy proves that isn’t the case.

I’ve analyzed each stock on my watch list to find out how long a mispricing takes to correct itself after earnings. And the answer is that the stock usually continues to climb over the next two months.

This means in Quick Hit Profits, we don’t have to panic over every twist and turn in the options price.

And that came in handy with our Qualcomm calls.

Learn How to Handle Options

Right now, the position is up nearly 50% since we recommended it.

But it’s been a wild ride over these first two weeks. And if you’re new to the strategy we use, that’s great experience for you.

The truth is, we don’t always see the option shoot straight up and hand us a big gain right away.

This shows the true volatility of options. It’s a great teaching moment.

If you can’t stomach the 20% to 50% one-day price swings, then trading options may not be for you — at least not yet.

You’re seeing, firsthand, the volatility (to the downside, but also to the upside) that options can throw at us.

With our Qualcomm position, you’ll notice that we didn’t panic as the option fell in value just one day into the trade. With our strategy in Quick Hit Profits, we held on. As much as we were down early on, we’re now up … just as quickly.

If you don’t have a strategy that tells you when to exit, you could be stuck panicking at every little drop the option goes through.

Luckily for you, we know when to look for the exits. In Quick Hit Profits, I lay out when and how to exit a trade when I make a recommendation. I’ll be keeping my eyes on this Qualcomm trade and update you here every week. When it’s time to close this trade, I’ll let you know in the Weekly Options Corner.

But today, the Qualcomm mispricing still has time to play out.

In Quick Hit Profits, we’re in and out between earnings announcements, capturing quick double-digit and triple-digit gains practically every month.

If you want more opportunities like Qualcomm, and more potential triple-digit opportunities, then click here to learn about a special offer only for Weekly Options Corner readers.

We’ll be back after the holiday with more options education.

Regards,

Chad Shoop, CMT

Editor, Quick Hit Profits

Previous Post
Next Post

Comments

Slot deposit pulsa tanpa potongan

Thank you for any other informative website. Where else
could I get that kind of information written in such a perfect manner?
I have a venture that I am just now running on, and I’ve
been on the look out for such info.

storno brzinol

Excellent site. Plenty of useful information here. I am sending it to a few friends ans additionally sharing in delicious. And of course, thank you for your effort!

web hosting off

hey there and thank you for your information – I
have certainly picked up something new from right here.
I did however expertise several technical issues using this website, as I experienced
to reload the website many times previous to I could get it to load correctly.
I had been wondering if your web hosting is OK? Not that I’m complaining, but sluggish loading instances times will often affect your placement
in google and can damage your quality score if advertising and marketing with Adwords.

Anyway I am adding this RSS to my e-mail and can look out for
a lot more of your respective interesting content.
Make sure you update this again very soon.

quest bars where

Thank you for sharing your info. I truly appreciate your efforts and I will be waiting for
your next post thanks once again.

http://j.mp

I like it when individuals get together and share opinions.

Great blog, keep it up!

asmr an

What’s up, its fastidious paragraph on the topic of media print, we all be aware
of media is a impressive source of data.

our scoliosis surgery

Hello mates, how is everything, and what you want to say about
this paragraph, in my view its actually awesome for me.

or asmr

Remarkable things here. I am very satisfied to look your post.

Thank you a lot and I’m looking forward to touch you.

Will you please drop me a e-mail?

scoliosis surgery but

Hurrah, that’s what I was exploring for, what a material!
existing here at this blog, thanks admin of this web site.

j.mp

It’s remarkable in support of me to have
a website, which is beneficial for my experience.
thanks admin scoliosis surgery https://0401mm.tumblr.com/ scoliosis surgery

app.gumroad.com

Magnificent items from you, man. I’ve bear in mind your stuff
prior to and you are simply too fantastic. I actually like what you have obtained right
here, certainly like what you’re stating and the way in which wherein you assert
it. You’re making it enjoyable and you still care for to keep it sensible.
I can’t wait to read far more from you. That is really a tremendous
website. asmr https://app.gumroad.com/asmr2021/p/best-asmr-online asmr

quest bars it

Hello! I’ve been following your site for some time now and finally got the courage to go ahead
and give you a shout out from Houston Texas!

Just wanted to mention keep up the excellent job!
quest bars http://bitly.com/3jZgEA2 quest bars

coub.com

It’s going to be finish of mine day, but before ending I am reading this impressive paragraph
to improve my experience. scoliosis surgery https://coub.com/stories/962966-scoliosis-surgery scoliosis surgery

bitly.com

Hi my loved one! I wish to say that this post is awesome, nice written and include approximately all significant infos.
I would like to see more posts like this . cheap flights http://1704milesapart.tumblr.com/ cheap flights

http://bit.ly/

I every time used to study post in news papers but now as
I am a user of net so from now I am using net for articles or reviews, thanks to web.
ps4 games https://bitly.com/3nkdKIi ps4 games

www.iherb.com

Great blog here! Also your site loads up fast! What host are you using?
Can I get your affiliate link to your host? I wish my website loaded up as
fast as yours lol quest bars https://www.iherb.com/search?kw=quest%20bars quest bars

Leave a Reply

Your email address will not be published.