Strangled

These articles generally focus on stocks with upcoming catalysts, such as earnings. Much research has shown that options premiums are usually reasonably priced around these events; at the very least, they reflect "the wisdom of crowds." Naturally, we can examine historical moves around these events and objectively assess whether options premiums imply a move consistent with the stock's history. Are historical moves a good predictor of what the future will bring? Maybe not, so we must also include a subjective assessment of market sentiment. Jittery? Resilient? Risk on? Risk off?

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