So too can Wall Street.
Over my 25 years in this business I’ve discovered a flaw in how the market prices publicly traded stocks – a flaw that you can exploit repeatedly for fast money-doubling trades.
Specifically, the flaw I am talking about is what I call the P/E Gap.
You’ve all heard of P/E or the price to earnings ratio. The gap I am referring to is when the P/E ratio becomes disconnected from the company’s expected profit growth rate.
This gap is nothing more than speculation. Some investors believe in the company’s future prospects while others do not.
The moment of truth comes when earnings are released. It is at this once-a-quarter moment when reality trumps speculation and in most cases it is the time when the P/E gap will close and close quite dramatically.
Therefore a savvy trader can exploit this opportunity with a well-timed trade in advance of earnings that is immediately closed in the day of trading after earnings are released.
I suggest using call and put options for these trades because of the impressive leverage one can obtain and the lower capital requirements to make the trade.
When the P/E gap closes you can easily double your money or more.
Play These P/E Gaps to Double Your Money in 24 hours. In just 30 minutes, you’ll learn a strategy turning Wall Street on its head, including: 5 Simple Steps for Money Doubling Trades, How to use Options to Maximize Profit Potential, Easy Plan to spend less than 10 minutes total trading time each week. Reserve Your Seat for this 30 minute FREE Virtual Lunch Training Session.
With a new earnings season starting next week with Alcoa’s report, here are three stocks with large P/E gaps that you can trade for fast profits: