The Next big Thing Could Be a Big Trading Opportunity With Relatively Small Risk...READ MORE
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| The Next big Thing Could Be a Big Trading Opportunity With Relatively Small Risk | | As attention turns to initial public offerings (IPOs) after well-known names like Lyft and Uber began trading, it can be useful to step back and look at how IPOs from previous years have fared in trading. Overall, many studies show that IPOs can be disappointing. That is based on a simple measure of performance compared to the broad stock market. This is similar to many studies which aggregate a large amount of data to develop a clear and precise summary. This type of analysis, of course, misses the fact that there will be some big winners and some big losers. It misses the fact that many stocks display unique traits and those traits, which can be thought of almost like a personality, can be tradable.
We look at the personality of a 2017 IPO and, as we explain in our latest article, find that the stock could be tradable. However, risks are high, and it could be prudent to use a risk management strategy that is able to precisely limit risk.
In the article, we use recent, live market data and show that the risk of a trade could be about $155 while the return could be as much as 122%. Since this is based on recent data, the actual return could be more or less, as could the risk, when you review the opportunity.
We have more details, including the specific trade, in our latest free educational article that is available right here.
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