Unofficial Earnings Play

Unofficial Earnings Play Hello Smart Option Sellers! The market is still in a manic state and jumping all over the place. We've seen the drop from late last week continue on so far this week, with the Dow coming off close to 500 points yesterday alone. The next downside test is once again the 200-day moving averages for all the indices. If it holds, we'll bounce. If it breaches, we could see some real solid selling take place. Here's the current chart of the Dow Industrials with the 200-day moving average sitting at $23,673 (red line on chart at time of printing). As we know, put-selling is a neutral-to-bullish type of trade, and we only want to take a stab when the market tells us to. At this time, and as I've mentioned before, it doesn't make sense to get in front of the freight train if we're just going to get steamrolled. I've got a few plays on my radar and when the markets give a better signal, we will hop in. We're also right in the midst of earnings season, and jumping into a new put-sell trade right before earnings time can be hit or miss. If we enter before earnings, we can catch a good wave if the stock rallies. But if the stock tanks, we'll be kicking ourselves for not being cautious. Two of my potential trades have earnings coming out next week, so I'm deciding if the time is right to enter. Also, volatility is heightened before earnings, which means the options are usually more expensive. That would be a great time to strike. I will send out an alert if I feel new trades are warranted. And speaking of earnings.... Bristol Myers Squibb (BMY) BMY is releasing earnings before the bell tomorrow and I have an unofficial trade that might interest you. From time to time, I like to give everyone other ways to potentially make money with options, in addition to our put-selling ways. In this case, it's from buying very speculative, cheap options, right before a company's e