Hello All,
Since AA reported rather mixed earnings as of yesterday, July 12, the markets have been a bit wobbly in terms of hovering around positive and negative. The next two weeks will definitely set the tone for the rest of 2011, as Greece, Japan, and national debt crises have rocked the first half of a highly volatile year.
Companies set to report earnings within the next two weeks are reporting for the past quarter, during which many analysts believe that a cooldown has occurred since the tsunami that hit Japan in mid-March. Analysts have also had to constantly lower their estimates of EPS and revenues multiple times as many companies have lowered guidance as well.
Even in the coolest of earnings seasons, many companies have a tendency to jump in a +/- direction sometimes of almost 20%, which proves to be ripe for initiating straddles or spreads that can earn lots of money. If you want to do it, you must do it now, for the time-decay of options may have already made it to expensive for entry. I leave you with a list of the most volatile stocks after earnings as seen on a post on seeking alpha. Have fun and let's hope you bet correctly!
Most Volatile Stocks on Earnings
I believe the earnings season is not around the corner if it has already started (aka AA's earnings)
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