ToddieM
Diamond Bar
Treasure Island
Worth visiting!
The first time I went to this place — 1 year ago
I went there for a stock seminar put on by “The Pirate” in Oct of 2002.
Comments:
What Was It About
What did the stock seminar cover?
ToddieM
Diamond Bar
The pirate’s angle was to buy call options on stocks that had “pre-announced” good earnings.
Just as some stock companies come out before earnings with warnings, some stocks will come out with good news as to upcoming earnings. Depending on how much they said they were going to beat earnings, would be how much he would bet on the stock.
Back in the go-go days, he would also buy calls on stocks that annouced “stock buybacks” where the company was buying back stock.
High Risk
Wow, that seems high risk to me. I always get out before earnings because you never know what could happen to earnings. The 2 I’ve been playing more recently both had good earnings (MA and RIMM). MA took off to the upside. RIMM tanked. Both on good earnings.
I could, however, see how this could be great gains. Unless you are specifically doing an earnings play such as a straddle or a strangle or taking a direction with money you can totally afford to lose on purpose, it’s best to not hold over earnings, at least, as far as I’ve learned and experienced.
For some stocks that move a lot and are volatile near earnings, I think this can be great opportunities to make some money, so as long as you know what you’re doing and keep your “costs” to a minimum.
ToddieM
Diamond Bar
It worked very well in the late 90’s, when the rising tide was floating many boats.
I dont get any promo pieces from the PIrate anymore, so I suspect he’s dropped the strategy altogether.
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