I have done a lot of research to forecast the outcome of the earnings, I am sure there is no certain way to predict the outcome! but one thing is crystal clear, and that is increased volatility near earnings!
Moreover, I think Option data in the case of BAC and WFC could help us to take one side of the trade!
BAC: Option wall for 01/21/2022: 23-45, Max pain: 40, Put/Call: 1.46, OI:1.588 Million
WFC: Option wall for 01/21/2022: 40-50, Max pain: 40, Put/Call: 0.925, OI:984 K
Education:
If price closes between option walls at maturation, Market Makers win, if price closes outside the wall at maturation, they lose money!
Maximum pain is the exact price that those who buy the option contract will lose the maximum amount of money!
The current market prices in BAC and WFC are attractive for market makers and some Quant funds (mean reversion strategy) to dump the prices!
Why?
If prices go down, they will be inside the option wall, so market makers win! and at the same time, they will move toward maximum pain!
The current option price for BAC put 49, Jan 21, 2022: 98 cents, it could move toward 45 which is 300% profit!
or become 0(in case of prices jump)
The current option price for WFC put 57, Jan 21, 2022: 1.63, it could move toward 50 which is 337% profit!
or become 0(in case of prices jump)
Be careful this is a very high-risk trade!
0 or +300% that is the question
You can see the most important support(green line) and resistance (red line) levels.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
*You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!(Based on Option wall data)
**Yellow line Shows Maximum Pain level.
***You can see more details and educational materials by reviewing the previous posts!
Moreover, I think Option data in the case of BAC and WFC could help us to take one side of the trade!
BAC: Option wall for 01/21/2022: 23-45, Max pain: 40, Put/Call: 1.46, OI:1.588 Million
WFC: Option wall for 01/21/2022: 40-50, Max pain: 40, Put/Call: 0.925, OI:984 K
Education:
If price closes between option walls at maturation, Market Makers win, if price closes outside the wall at maturation, they lose money!
Maximum pain is the exact price that those who buy the option contract will lose the maximum amount of money!
The current market prices in BAC and WFC are attractive for market makers and some Quant funds (mean reversion strategy) to dump the prices!
Why?
If prices go down, they will be inside the option wall, so market makers win! and at the same time, they will move toward maximum pain!
The current option price for BAC put 49, Jan 21, 2022: 98 cents, it could move toward 45 which is 300% profit!
or become 0(in case of prices jump)
The current option price for WFC put 57, Jan 21, 2022: 1.63, it could move toward 50 which is 337% profit!
or become 0(in case of prices jump)
Be careful this is a very high-risk trade!
0 or +300% that is the question
You can see the most important support(green line) and resistance (red line) levels.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
*You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!(Based on Option wall data)
**Yellow line Shows Maximum Pain level.
***You can see more details and educational materials by reviewing the previous posts!
Use the following link to access trading ideas: patreon.com/SniperTraderStocks?utm_medium=unknown&utm_source=join_link&utm_campaign=creatorshare_creator&utm_content=copyLink
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Use the following link to access trading ideas: patreon.com/SniperTraderStocks?utm_medium=unknown&utm_source=join_link&utm_campaign=creatorshare_creator&utm_content=copyLink
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.