Author: The INO.com Team

Earnings Calendar for August 2021

Posted on by The INO.com Team

Over 2,300 publicly traded companies are scheduled to release earnings data in August 2021.

Companies big and small hope to beat analysts' estimates with better than expected bottom-line numbers.

The story should be similar to every other earnings season - some companies will smash estimates while others will disappoint the market. And, some announcements will spawn incredible earnings plays for active traders.

Most Anticipated Earnings For The Month

Below are some of the most anticipated scheduled earnings announcements for August Continue reading "Earnings Calendar for August 2021" →

What Is An Earnings Surprise?

Posted on by The INO.com Team

Earnings season is one of the most exciting times on Wall Street.

Thousands of publically traded companies hope to impress investors with their quarterly financial reports. In the same vein, retail traders often look at this event as a chance to ride quick price moves, especially if the company beats analysts' earnings per share (EPS) expectations.

If a company can produce higher numbers than external forecasts, they are likely to turn heads. And while it's important to note that traders and investors should carefully consider the entirety of a company's quarterly report, EPS is often the key performance indicator.

You may think that a stock price would jump every time a company delivered an EPS above analysis' estimates. But, solid earnings announcements don't always translate to big stock moves... sometimes, they can do the opposite. Continue reading "What Is An Earnings Surprise?" →

Weekly Stock Market Forecast

Posted on by The INO.com Team

This week we have a stock market forecast for the week of 7/25/21 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!

The S&P 500 (SPY)

SPY Daily Chart - Stock Market Forecast

Another week of organic bearish sentiment and stimulus bringing bullish energy into the market. These cross-currents make many of the inputs I use to forecast prices buddy and unreliable, so it puts me on the sidelines until the odds for success improve.

Let’s take a minute to unpack the word “odds.”

I want you to think of the markets like a political campaign for governor of a state. Continue reading "Weekly Stock Market Forecast" →

Weekly Stock Market Forecast

Posted on by The INO.com Team

This week we have a stock market forecast for the week of 7/18/21 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!

The S&P 500 (SPY)

SPY Daily Chart - Stock Market Forecast

The rally in the S&P 500 (SPY) fizzled out this week as forecast, and while the forces I am able to observe and measure in the index itself didn’t collapse into bullish domination, the bears were really mauling all the potential longs on my watchlist.

I would expect to see the selling continue as a correction form but wouldn’t expect a full market break this week unless external news pounds an already vulnerable market.

This upcoming week is a “wait and see” week as the best opportunities I was able to find only carried a 60%-65% chance for success. With the likely stop losses coming in HOG and NKTR, I have used up my “aggression budget” for the time being and am gearing down into a more conservative posture. Continue reading "Weekly Stock Market Forecast" →

Navigating Volatility - Beta-Controlled Options

Posted on by The INO.com Team

Controlling portfolio beta, which measures the overall systemic risk of a portfolio compared to the market, on the whole, is essential as these markets continue to break record high after record high with violent pullbacks. The month of June was a prime example as the markets pushed to new all-time highs early in the month, then suffered a Federal Reserve induced sold-off to only bounce back into positive territory to close out the month. Controlling beta while generating the same or superior market returns is the goal with an options-based portfolio. A beta-controlled portfolio can be achieved via a blended options-based approach where 50% cash is held in conjunction with long index-based equities and an options component. Options alone cannot be the sole driver of portfolio appreciation; however, they can play a critical component in the overall portfolio construction to control beta.

Generating consistent monthly income while defining risk, leveraging a minimal amount of capital, and maximizing return on capital is the core of this options-based/beta-controlled portfolio strategy. They can enable smooth and consistent portfolio appreciation without guessing which way the market will move, and allow one to generate consistent monthly income in a high probability manner in various market scenarios. Over the past 15 months (April 2020 – May 2021), 293 trades were placed and closed. An options win rate of 98% was achieved with an average ROI per winning trade of 7.0% and an overall option premium capture of 84% while moving in lockstep with the S&P 500. The performance of an options-based portfolio demonstrates the durability and resiliency of options trading to drive portfolio results with substantially less risk via a beta-controlled manner. The options-based approach circumvented September 2020, October 2020, January 2021, and May 2021 sell-offs (Figures 1, 2, and 3).

Options
Figure 1 – Overall options-based performance compared to the S&P 500 from April 2020 – May 2021
Continue reading "Navigating Volatility - Beta-Controlled Options" →