Traders looking for a pre-earnings strategy for PCLN might want to consider a bull call spread.
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According to data from Trade-Alert.com, one trader opened a bull call spread using the November 26 and 31 strikes.
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According to data from Trade-Alert.com, one trader opened a bull call spread using the January 2012 20 and 17.50 strikes.
As most options traders know, the only risk associated with a bull call spread is the net debt incurred by entering the position.
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Traders looking to take advantage of a post-earnings AAPL rally may want to consider a bull call spread centering on the May 345 and 360 strikes.
While the only risk associated with a bull call spread is the net debt incurred by entering the position, there is a considerably higher risk assumed by selling the September 3.50 puts.
While the only risk associated with a bull call spread is the net debt incurred by entering the position, there is a considerably higher risk assumed by selling the January 2012 12.50 puts.
Bulls looking to hedge their bets in the event of a post-earnings pullback should considering coupling the bought 12-strike call with a sold April 15 call, resulting in the initiation of a bull call spread.
While there is the potential for a rebound for RIMM, especially if a buyer is found in short order, a safer play for those looking for RIMM to hold its ground may be a bull put spread.
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The spread between bullish and bearish sentiment, the bull-bear spread, widened to -14 percentage points.
The spread between bullish and bearish sentiment, the bull-bear spread, is above 0.0 for the 13th consecutive week.
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One of the statistics highlighted in the article was the spread between bullish and bearish sentiment (aka, the bull-bear spread).
The difference between bullish and bearish sentiment, the bull-bear spread, widened to -22.4 points.
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This is the most negative the bull-bear spread has been since September 22, 2011.
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The difference between bullish and bearish sentiment, the bull-bear spread, is 18.4 percentage points.
The difference between bullish and bearish sentiment, the bull-bear spread, is at 14.6 percentage points.
The difference between bullish and bearish sentiment, the bull-bear spread, narrowed to -2.6 percentage points.
Similarly, bearish sentiment above 50% or a bull-bear spread below -29 points would be more correlated with market reversals.
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You can construct a similar return profile with three trades--a "bull-call spread, " in the argot of the Chicago options pits.
The bull-bear spread stayed in positive double digits for 13 consecutive weeks between May 19, 2005 and August 11, 2005.
This is particularly evident in the bull-bear spread (bullish sentiment minus bearish sentiment), which is positive for the second consecutive week.
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The proximity of bullish and bearish sentiment to their historical averages is one of the things I pay attention to in our survey results, in addition to the bull-bear spread.
The difference between bullish and bearish sentiment (the bull-bear spread) is also unusually high at 31.5%, but not so high as to create caution that individual investors are too optimistic.
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The 21.3-point spread between bullish and bearish sentiment suggests that optimism remains below levels that would be considered excessive, however. (The bull-bear spread has topped 40 points nearly 70 times since 1987.) This suggests that though many individual investors are hopeful, concerns about the economy, interest rates and the federal deficit have not faded into the background.
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With the bull-to-bear spread at above 30%, you have a reading typically associated with peaks.
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Last week it reached 55.4% bullish, only 16.3% bearish, the largest spread since the bull market top in 2007, and higher than its level in late April last year.
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