Jaytee...1) When/how do you determine which earnings play are going to be straight stock purchases versus options plays.
It's a matter of how much money I have to invest at that point in time. But, on the other hand, if the company has run up quite a bit (i.e. CDG,PESC,PTEN,RIG) I buy the option...
If the company is an intermediate hold (i.e. COST, ESCMF, PIR,BBBY,MLHR are now becoming my intermediate holds).. I buy the stock...For the most part, I buy options that are in-the-money or deep-in-the-money. For oil sector purchases, I can buy strike prices 1-2 points out of the money... I currently do not hold any stock in oil services sector... I have about 12 option position in that sector.
2) Do you check out IBD daily each morning for prospects to filter?
Yes, I do... I also read Barron's judiciously... but mostly I use both these publications to confirm rather than initiate buys... (i.e. Monday Barron's has very positive articles on ESCMF, BBBY, COST, whereas the New America section of Investor's Business Daily have postive articles on CFMT, ITIG. This newspaper also featured FFD, [which I bought on Thursday and iterated an earnings play for October 17 about 10 days ago] its a "Company in the News" for Monday.
3) Are you using VectorVest , as well, along with your of her veritable "arsenal" of tools to weed out the gremlins with teeth (that come back to bite you)?
Just loaded the software and I'm reading the pamphlet this weekend..
JBIL bit me... but it was my own fault. When I consider the last 2 weeks of earnings plays, I could have actually had a nice run and JBIL profit was in my grasp.
SIII stopped following it... I like SII... |
