"cmlviz" said : Trading Momentum into Earnings Optimism With Options in Group 1 Automotive Inc

Group 1 Automotive Inc, GPI, earnings, option, optimismTrading Momentum into Earnings Optimism With Options in Group 1 Automotive IncGroup 1 Automotive Inc (NYSE:GPI) : Trading Momentum into Earnings Optimism With Options2017-07-2There is a powerful pattern of optimism and momentum in Group 1 Automotive Inc (NYSE:GPI) stock right before of earnings, and we can capture that pattern by looking at returns in the option market. That has been a tradable phenomenon in Group 1 Automotive Inc. It's worth noting again that we are only talking about two-weeks of trading for each earnings release, so this is 114% in just 8-weeks of total trading which annualizes to 743%.The personality of this bull market is one that shows optimism before earnings -- irrespective of the actual earnings result. Long a Call Option * Monthly Options * Back-test length: One-Year * Open 14-days Before Earnings * Close 1-day Before Earnings * Holding Period: 14-Days per EarningsWinning Trades: 2 Losing Trades: 2 Pre-Earnings Call Return: 114% Annualized Return: 743%Now we can look at just the last year as well:We're now looking at 114% returns, on 2 winning trades and 2 losing trades. That's anThat's the power of following the trend of optimism into earnings -- and never even worrying about the actual earnings result.We can also see that this strategy hasn't been a winner all the time, rather it has won 5 times and lost 7 times, for a 42% win-rate and again, that 96.4% return in less than six-full months of trading.


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AutoZone (AZO) vs. Penske Automotive Group (PAG)

Penske Automotive Group Company ProfilePenske Automotive Group, Inc. is an international transportation services company. AutoZone (NYSE: AZO) and Penske Automotive Group (NYSE:PAG) are both mid-cap retail/wholesale companies, but which is the superior stock? Analyst RecommendationsGet AutoZone Inc. alerts:This is a summary of current ratings for AutoZone and Penske Automotive Group, as provided by MarketBeat.com. Given AutoZone's stronger consensus rating and higher probable upside, research analysts clearly believe AutoZone is more favorable than Penske Automotive Group. Penske Automotive Group has a consensus target price of $55.00, suggesting a potential upside of 25.26%.


Penske Automotive Group Inc Risk Points versus Consumer StaplesPenske Automotive Group Inc (NYSE:PAG) Risk Points versus Consumer Staples (XLP)2017-07-2Option trading isn't about luck -- this four minute video will change your trading life forever: Option Trading and TruthOption trading isn't about luck -- this four minute video will change your trading life forever:This is a scatter plot analysis of the critical risk points from the option market for Penske Automotive Group Inc (NYSE:PAG) compared to its own past and the Consumer Staples ETF. * We can further see that the current IV30 for Penske Automotive Group Inc of 29.25% is closer to theof 24.88% than the annual high of 45.64%. It allows us to easily see where the forward looking risk for Penske Automotive Group Inc (NYSE:PAG) lies relative to the last year, and the various major stock groupings and thesector without using time series data, which can confuse the information. CONTEXT: THE INDICES S&P 500 (SPY) IV30 9.22% Nasdaq 100 (QQQ) IV30 16.13% Consumer Staples ETF ( XLP ) IV30 9.7% Biotech (IBB) IV30 20.83%Penske Automotive Group Inc (NYSE:PAG) PAG 52 Week Low IV30 24.88% PAG Current IV30 29.25% PAG 52 Week High IV30 45.64% PAG Current HV30 30.32%Penske Automotive Group Inc Implied Risk Scatter Plot ( a new risk chart, built for option traders )blueblackredgreenThepoint is the current 30-day implied volatility for Penske Automotive Group Inc.Thepoint is the current 30-day implied volatility for the Consumer Staples ETF (XLP).Thepoint is the 52 week low in IV30® for Penske Automotive Group Inc.Thepoint is the 52 week high in IV30® for Penske Automotive Group Inc. * For some context, we note that the annual range in IV30® for the Consumer Staples ETF is between [7.86%, 15.88%] while Penske Automotive Group Inc has had a range of [24.88%, 45.64%].Get this same analysis on any ticker here:This is chart was developed for the trader.


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