Earnings Season Is Gold to Some Option Traders
Written by Morris Puma on October 18th, 2009 in Investment.
Guess what option traders? There’s a new options back-tester on the market that you need to know about. San Jose Options has just released the Options Toolkit which can back-test option strategies instantly and gather you organized data, helping you construct new trades with further confidence.
I am very excited about the new software, and to give you an idea of the power of this monster, listen to this. What used to take weeks of research using other options back-trading software, now can be done in the Options Toolkit in just 1.2 seconds!
Imagine the power this brings to you, the investor. By gathering this data so fast, option traders can confidently put on trades that they would never be able to do without the software. Spend less time researching trades and more time forward trading. This is truly a product that I believe will revolutionize the way each option trader invests.
Earnings Plays Week 1
The Options Toolkit has just released its earnings tester, and after using it just one week, I have had great results. I made 4 different trades and yielded about 30% net. That is after paying commissions. The software quickly back-tested these stocks for me and gave me the data and confidence I need to make the trades.
I think the options market has really needed a tool like this for quite some time now. The Options Toolkit is what every options trader needs to refine his strategies to perfection. It’s definitely the best thing on the market to gather data on trades and to find upcoming trades with higher probability.
Let me give you a quick example of what the Options Toolkit does for me. I type in the symbol AAPL, set my parameters, click GO and wallah! I quickly see that AAPL has averaged over 20% during earnings over the last few years. Hmm, this looks like an interesting trade. I think I’ll bookmark it. Now, let’s see what would happen if I did the same strategy on PCLN…well, just the opposite. PCLN averaged a loss of 25% on this same strategy over the last few years during earnings announcements. However, this is great news. This means that PCLN can average 25% over earnings if I just reverse this strategy…not a bad idea.
Well, I hope you understand what I am saying here. If you don’t see the value, then you probably haven’t spent much time back-testing. Back-testing is one of the best things an option trader can do. If you want to learn how to trade, then I’d really recommend it for learning adjustments and seeing what you can expect to make or lose on a trade.
Learn more about the Options Toolkit and the San Jose Options Mentoring Program, please visit www.SJOptions.com and receive your Free 45 Minute Video on Option Trading Greeks. Learn what Low-Stress Option Trading is all about. Get a totally unique version of this article from our article submission service
