Short-term Option Swing Trading Ahead of Earnings in LGI Homes Inc – CML News

This article was originally published on this site

Disclaimer
The results here are provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation.

PREFACE
There is a pattern of bullish momentum in LGI Homes Inc (NASDAQ:LGIH) stock just days before earnings, and we can track that by looking at swing returns in the option market. This is a short-term swing trade, it won’t be a winner forever, and it can be easily derailed by a couple of down days in the market irrespective of LGI Homes Inc news, but for now it has shown a repeating success that has not only returned 3,272% annualized returns, but has also shown a win-rate of 57%.

IDEA
The idea is quite simple — trying to take advantage of a pattern in short-term bullishness just before earnings, and then getting out of the way so no actual earnings risk is taken. Now we can see it in LGI Homes Inc.