Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2009/04/26/not-your-typical…
I am going to make a recommendation that is really not for the faint of hearts. That is because there is actually a golden rule that states that you should never ever ever ever ever buy a stock in front of earnings. However, I go against conventional wisdom and I do what I want.
The stock trading system I designed gave me a pick that is releasing earnings soon. The pick is Capella (CPLA). I am not going to purchase it on my personal account, however, I am going to keep trade of the trade on my paper account that I have at CBOE.com.
The system is recommending me to buy CPLA at the open on Monday. The initial stop will be set at a price of 45.31. I also would sell the May 55 call that is priced at 1.7 (any premium above 3% of the stock price on a monthly basis is good for me). The risk of the trade is initially set to be about nine percent. You can also buy the shares without establishing a covered call.
I will discuss this pick and the adjustments I will make until the trade is… (Read the rest of this article at the following article source link for the full story)
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