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Speed Retirement System Event Trading

Speed Retirement System Event Trading. August 11, 2011. Event Trading Presentation. To listen to the presentation, Click on the August 11, 2011 Webinar Recording. The presentation begins About half-way through . There was a follow up presentation Given on August 24, 2011, so if

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Speed Retirement System Event Trading

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  1. Speed Retirement SystemEvent Trading August 11, 2011

  2. Event Trading Presentation To listen to the presentation, Click on the August 11, 2011 Webinar Recording. The presentation begins About half-way through. There was a follow up presentation Given on August 24, 2011, so if You are interested in this strategy, I Encourage you to listen to that webinar and Download that powerpoint as well.

  3. What is Event Trading? Trading off major news that will Impact a stocks price. The most common news that Will have a major impact on a Stock’s price is a Quarterly earnings announcement.

  4. As you know from the“How to Create A Watchlist”video in the members area,I advocate playing the run upinto the earnings announcement.With this strategy, you want to see a well defined trend, usually starting 10 days before the earnings release. The trend can be either up or down and trade the stock into the announcement. Youwould close out the positionthe day before the release! I call this the … Earnings Run Strategy

  5. Tonight, I want to introduce anotherway to play the earnings announcement.This can be used in conjunction withthe earnings run play or itcan be traded as a separate strategy.It is a 1 or 2 day trade.

  6. The concept is simple.You want to buy astraddle the daybefore theearnings release.

  7. Don’t let the concept ofa Straddle intimidate you.All it means is that youwill buy BOTH a Call Optionand a Put Option at thesame strike price.

  8. And because you know whenyou will sell the position,you can buy the front monthoptions and payless for time value.

  9. There will be times whenyou may have to trade itusing a strangle. All thismeans is that the Call andPut options have a differentstrike price.

  10. Let’s look at some examples.RIO - 8/3/11WLT – 8/3/11BSFT – 8/8/11CFN- 8/8/11PANL – 8/8/11FOSL – 8/9/11MOTR – 8/9/11CSC – 8/10/11CREE – 8/9/11DNDN – 8/3/11

  11. You can micro managethe trade if you want totry to capture largergains. Use an intra day60 minute chart todo this.

  12. Micro Managing WLT

  13. I know … your saying“big deal”, the marketshave been selling offin a big way, so makingmoney on the shortsideshould be easy!

  14. Here are two Bullishexamples that occurredduring the biggestmarket sell offsince 2008.

  15. Here is anotherBullish Examplein a Bear Market

  16. Does this work withlow pricedStocks?Let’s see …

  17. Here is a realexample ofa trade Iclosed outthis morning …

  18. And to show you whatis possible with thisstrategy …

  19. Here were 2 from today thatwere not that great …AAP – Down $1.76Yesterday’s Close Today’s Close$50 Call - $2.15 $2.30$50 Put – 3.15 1.95 Total = $5.30 $4.25$110 Loss or 20%

  20. 2nd Example from Today (8/10)RLPrior Today’s Close Close$119.85 $125.28$120 Call $6.38 $8.90 $120 Put $6.00 $3.90 $12.38 $12.80$.40 profit or 3.2%

  21. Does this happen everyday?No. Of course not!But it is possible!!!I know of no other wayto legally earn theserates of returns.

  22. The beauty of thestraddle strategy isthat when it doesnot work out …you do NOT losea lot of money!The Risk to Rewardis amazing!

  23. Tips and Suggestions.1. Know when earnings will be released. Check the company’ssummary page at yahoo fora definitive time.2. Great candidates can be biotechcompanies, and high flying stocks,meaning stocks that trade on a highP/E ratio multiply.

  24. 3. High flying companies (high p/e)stocks can be great because if they miss their earnings estimate, you be assured that the stock will tank.4. Make sure there is a decentamount of open interest inthe options. Also, it is best to havebid/ask spread less than $.50.

  25. 5. You do NOT have to pay fora lot of time because you know when the earningsrelease date is. 6. Actually, the less time youhave to pay for, the better. I showed the GOOG example1 day before expiration.

  26. 7. If the stock has weeklyoptions, you can use them.8. If you have intra day chartsand data, you can micro managethe trade to try and capturefurther gains.

  27. Thanks for watching!Use this strategyto fatten your account!

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