Time to be Cautious
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Time to be Cautious

John F. Carter 1/21/2014

Hey everybody, this is John. Welcome to the free video for simpler options. We had a fun day doing the earnings strategy class today. We'll talk a little bit more about that in a second. SPY, you can just see here we're just churning and burning at that 183 level. There are -- I mean obviously -- this market has been very, very strong. There continue to be some things taking shape in the other key markets that are pointing to stocks moving lower this week. Not a huge move or anything like that but it's just being cautious. You just want to be on the right side of this -- obviously path of least resistance and all that. So I'll talk about that in the premium video. But at this point just looking for a pull back on the daily chart to the 21 EMA. OK. Obviously nothing huge at this point.

On Tuesday -- of course the markets are closed on Monday -- on Tuesday we're going to be doing an earnings class and we did it on Saturday with the basics. On Tuesday, we're going to be doing the following three stocks live and we've got -- there's going to be three trades that we're going to be doing on each one. There's the pre earnings, there's the pre-pre earnings, pre earnings and post earnings trades we'll be doing on Tuesday and Wednesday.

So CREE is going to be one. We're at 62.50. We've got a nice implied volatility right now of about 116 percent. So that will be a pretty good one. So we'll be talking about this one live in the trades that we'll be doing.

And then the other one is IBM. This is kind of a classic one, big stock, very liquid, right at a key resistance level. We'll be doing an earnings play on that one on Tuesday as well.

And then other one that we'll be looking at here is Texas Instruments, TXN. This one's a little bit lower key. It used to be a much more volatile stock back in the day, but not it's a little bit lower key and very good for smaller accounts.

The last thing that we're going to go over are what I call -- on Tuesday, are what I call the ten bagger earnings trades. So the ten bagger earnings trades are fun. And essentially what they are, they're very low risk. This is the price paid on the left side. You can see this is the price after about 10 days.

A lot of these will end up being ten baggers if they're done correctly. And generally, especially the ones -- you know, the idea is we're looking for these that are about a dime. But you need to know, they only work on specific stocks, OK. And you gotta do it at a specific time frame. But the nice thing about it is it's very limited risk and very, very large upside potential. So on Tuesday we're going to be doing the remainder of the class from 1 to 3 central, and during that time we're going to initiate the first series of ten bagger trades on Tuesday. And then we'll follow up with some additional ones on Wednesday. So that will be a lot of fun.

If you've missed this class and you want to get up to speed, the nice thing is of course is that on Monday and Tuesday morning, you'll actually have time to review the Saturday class, which was 4 hours. And in that class we went through all this. There was a ton of ah-hahs, especially on the ten bagger trades which we're going to start initiating on Tuesday.

So if you would like to participate in setting up the new ten bagger trades and reviewing what we covered. It was interesting because even the people that traded earnings were blown away. I mean, to me, I thought this was kind of basic stuff. But when we went through and really understood the process of the things that you can do leading up into earnings, day of earnings and day after, especially to defend it, there's a very, very solid amount of info that people could use for smaller accounts and bigger accounts.

Of course, the thing that most people were excited about is that they didn't even realize that you could do ten bagger trades on earnings. So that was fun. This you can -- if you're still getting this link, you can sign up for $497. You'll get the recording via a link of the class on Saturday so you can get up to speed. And then you'll be able to join us on Tuesday. We'll be doing Tuesday live from 1 to 3, that's central time, and we'll go over setting up the ten bagger trades plus managing and setting up trades that will be released that day. All right. It's going to be a lot of fun, looking forward to seeing you guys there. You could go to simpleroptions.com/earnings and we'll see you on Tuesday.