Trading Eaton Vance Post Earnings
- Posted by Greg Harmon
- on November 19th, 2012
Eaton Vance, $EV, the Mutual Fund Company, reports earning in the morning and where it has options they have spreads wide enough to drive a truck through and total open interest of only about 1,000 contracts across all strikes and expiry’s with 11 traded today. Translation you can not play this stock for earnings using options or adequately protect your position, even if you are using your sworn enemies money. But you can be prepared to trade off of the reaction to the report. Take a look at the chart below. The last 5 times it has printed a candle with a Topping Tail, like in the bubbles, which was confirmed by a move lower the following day, it ended up pulling back on average 4.3%. And what kind of candle do we have here today……
On the other side of the coin there has been a rounded consolidation break out today that could drive towards the target of 32 on a continuation higher. Which way do you play it? Which ever one it gives you in the morning.
Join the Dragonfly Capital Views Premium Membership
These trade ideas are one piece of the Premium Service, which is complemented by weekly trend analysis, daily earnings plays and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Macro Week in Review/Preview October 31, 2014
- The Opportunities in the Market the Last 2 Weeks
- How to Spot a Perma-Bear
- How Gold Miners Are Worse than Gold
- Starbucks Earnings Trade Ideas for Less Than a Pumpkin Spice Latte
- Premium Earnings 10-30-14
- How to Trade Baidu for the Earnings Report
- Premium Earnings 10-29-14
- SPYing Above the Treetops
- Earnings Trade Ideas for Facebook