As a binary options trader, we are in the midst of one of my favorite seasons…earnings report season! As a tech lover, one of my favorite stocks is Facebook. So, if you've been watching the news, you can bet that for me, April 22nd is going to be a very big day. On the 22nd of this month, Facebook will be releasing its earnings report. Below, I'm going to tell you why this is bound to create a trend that we can make money from, how to make money from the trend, and what I'm expecting to see happen. So, let's get right to it.
Why We're Bound To See A Big Trend On April 22nd
If you ask big money investors which massive tech company has the highest amount of price volatility; 9 times out of 10, the answer is going to be Facebook. While the company is on a solid track to growth, they're stock moves around almost as much as small cap stocks. When the news comes out, for Facebook, the needle moves. So, regardless of whether or not the earnings report is positive or negative, we can expect massive movements in Facebook's stock price on the 22nd.
How You Can Make Money From The Trend
Trend trading is not only one of the most simple binary options trading strategies, it's also one of the most lucrative. In this particular case, here are a few steps to help you make money from the trend…
- Make Yourself Available For The Release – You're not going to make a dime if you're not available to trade. So, mark it on your calendar…April 22nd is a trading day!
- Open Your Candlestick Chart – On the 22nd, open up your Facebook candlestick chart and set it to the 5 minute frame before the report is released.
- Track The News – Now, it's time to track the news to get an idea for investor sentiment leading to the report. Keep in mind that it's not yet time to trade…that time is coming.
- Watch Your Chart – When the report is actually released, watch your candlestick chart for 5 minutes. For the first few minutes, you'll see heavy volatility as the stock decides which direction it wants to move in. However, after a few minutes a clear trend should make itself visible.
- Make Your Trades – If the trend is going up, purchase call options. If the trend is going down, purchase put options.
That's it! Following the steps above, you'll be sure to make a decent return on the Facebook earnings trend.
What I'm Expecting To See Happen
Personally, I'm expecting to see uptrends. Now, I can't tell the future. However, it's important to remember that all the news that's surfaced about Facebook recently has been positive. The key factor here is going to be how badly the company's advertising sales were hurt abroad by the rising value of the US dollar. All in all however, I think that we're in for some great things!
What Do You Think?
Do you think Facebook will produce a positive earnings report? Which direction do you think the trend will move in? Will you be trading on Facebook earnings? Let us know in the comments below!