Hands down, the absolute worst kind of volatility is zero volatility.
Not only does a “No Volatility / No Direction” – aka NVND – situation drive investors crazy as they wait for things to pick up… zero volatility will also cost traders money as time passes with no movement.
Take Fifth-Third Bancorp (Nasdaq:FITB), for example. In 2019, the banks were settling into what is normally a weak seasonal period. So, I recommended the purchase of a put on FITB and prepared for what my research told me was the inevitable – the stock was going to see a volatility storm and lower prices.
A month later, I’m watching the computer screen in aggravation after the stock had gone sideways on me.
It was going through NVND: a trader’s worst enemy.
We’re about to get into the most exciting part of earnings season.
And no, I’m not talking about results from big names like Facebook, Apple, or Tesla. Believe it or not, these aren’t the most exciting reports of earnings season.
They’re actually the most boring.
Analysts spend day in and day out talking about these stocks. Their results are expected, their trades are crowded, and if you’re asking me, they aren’t worth your money.
The companies that are announcing over the next three weeks are different. They’re the companies that have the least number of analysts tracking them…
Which means that you’ve got the best opportunity to turn announcements into profits. You just have to do a little homework…
Or let me do it for you.
Here are the top two most important earnings names to watch this week…