Trades

Trade Findings and Adjustments 01-26-2023

Trade Findings and Adjustments 01-26-23

Keve Bybee – keve@hurleyinvestments.com

 

What are we looking at?

  • Earnings and rate hike decision on Wednesday
  • If we get a .25% rate hike market will continue higher
  • If we get a .50% rate hike the market will be surprised as it expects a .25% hike and stocks may fall
  • My feeling is that we will get a .50% bps hike as inflation hasn’t come down enough
  • Feb, March, May rate hikes coming up

 

BA – 1/25 earnings report

  • Missed numbers BUT sold a lot of planes
  • Should be cash flow positive this year

 

How do we protect for earnings?

  • Usually put protection on around 2 weeks before earnings unless the stock is having a great pre earnings run. Just to avoid volatility causing expensive options prices.
  • We will buy around 5 – 6 weeks of time to avoid time decay of options expiring in that month.
  • Typically buying ATM strike prices
  • Decide if we need to “roll up” the puts to higher strike prices if the stock has run up, or let them run.
  • IF we roll up, the math has to make sense: we need to be gaining more dollars per share that we are protecting than we are spending to buy a higher strike price.

 

Related posts

Investor, Trader or Gambler – Which are you?

admin

The “Knee Jerk” Reaction in Trading

admin

How to know when your “head” is screwing up your trades!!!

admin

Covered call or protective put for protection?

admin

I want to catch the big run up in our stock market!!!

admin

Does your money manager protect your stocks (GOOG, AAPL or ISRG) in volatility???

admin

Leave a Comment

five × one =