GlobalIntelHub.com (Zero Hedge Exclusive) 2/26/2020 -- So we all know there is one thing that can stop Coronavirus in it's tracks: Stay at home. That begs the question that what you will do all day? Choices are many but for Zero Hedge readers and many others there's one clear activity that will consume your day: Trading.
We're not going to go into a diatribe on the waste of time trading Crypto, other than to say it's really difficult to make money in Crypto unless you know the flow because you control the float.
So what's left is stocks, another manipulated market - but here's an interesting and unusual strategy based on 3 unusual data sets:
- Employee Options Lockup Expiry
- Securities Class Action case announcements
- Executive movements (hiring & firing)
These unrelated data sets have interesting implications. What's cool is they are not widely followed as the more commonly known economic indicators like NFP. Let's quickly break down one at a time.
Employee Options Lockup Expiry means the date at which employees can exercise their options. What do 99% of employees do when they can? They sell. Many traders know this will create a dip down in the stock no matter how strong it is, especially for big companies where there can be many employees. It's possible, but not easy, to find dates when these lockups expire. Go short hours before, typically it will be 4pm or after hours so be prepared to hold for the night.
Securities Class Action case announcements don't always move stocks, as the cases are usually filed after a big drop in a stock. But that's not always the case. Sometimes an announcement of an action can drive the price lower - especially if criminal fraud is involved. Here's where it takes a bit of research. You have to know the cases and the companies well. Today's example of the OPRA stock case announcement actually sent the stock higher.
OPRA finished up 13%+ on the day, even after this bad news. A short squeeze perhaps, but it just goes to show you that it can go either way. Same thing for the next strategy.
Executive Movements means hiring and firing of CEOs. Sometimes, a stock will rally after a CEO is fired, other times the opposite. It all depends on the situation, which is where a bit of homework is involved. And for all these strategies, you have to watch the headlines. In some cases you can find direct feeds of info like this, such as Glancy's site that has "New Cases" lists, or you can develop your own.
These strategies require lots of work - research, time, and a skill for analysis. If you don't have these, you can develop them. With Coronavirus Quarantine coming soon, you will have lots of time. This is just one suggestion to put it to good work. Good Luck!
