Information presented on this site is for educational purposes only. No statements made should be construed to be advice, recommendation, or a suggestion.† Please read the Risk Disclosure before using the BAC, Inc. site.
Options On Individual Stocks
The BACís Option Scan includes the most popular EFTís and S & P 100.† Many additional active stocks that are popular for option traders. Are also included in the daily scan.† However, even more caution is required for individual stocks than for EFTís.
The Investor should research recent news about the company, earnings announcements, dividend dates, and expected dividends, and possible take-over rumors.† BACís Option Scan looks only at the pricing information and not the reason for it.† An apparent investment opportunity may be but a mirage.
Implied Volatility Advantage
Normally, the volatility of the current monthís options is lower than the future months. This scan reports those stocks and EFTís where an implied volatility advantage exists.† Time spread options can be used to take advantage of the imbalance.
For the advanced investor, Earnings Plays seek to profit from the collapse of volatility of the current months options after the earnings announcement is made.† These plays are very risky and should be attempted only by those who are familiar with the technique.
BAC;s Option Scan aids the investor by tracking the earnings announcement date of† the most popular stocks for which options are traded.†† Any option with an expected earning announcement in the next five days that also has a volatility inversion above a preset threshold will be reported.†