Scratching My Data Itch: Analysts at Earnings Calls [View article]
I hate to tell you this but I strongly suspect your time was wasted. The curve looks "normal" to me (when you're bounded by zero on the downside). Further, I'm 95 or 98.6% sure the correlation to the number of analysts following the stock would be close to 1. There should also be a high correlation to the stock's market cap. Both of the two factors I mention are monitored by "quants" and can be a factor in stock performance (ie, "neglect" and "small cap")...
but will you're study help you pick winning stocks? No, not really.
'Take Off' with Boeing Option Combination Plays [View article]
Since selling a put is equivalent to a buy-write, you could sell 2 of the puts and accomplish the same $profit and risk profile. This requires NO CASH outlay, so what's the cash-on-cash return?
While I agree with your math, I think what the others are trying to point out is that it's "the wrong math". My broker requires only $3,500 on my trade but $12,400 in margin for your trade. This means selling 2 puts rather than your trade generates about 3 times the return-on-margin (43% vs 14%) (This is the "return on investment" because you have to have $3,850 vs 12,400, respectively, to make the trade).
The only reason to do a buy-write is that naked puts aren't allowed in IRAs.
Scratching My Data Itch: Analysts at Earnings Calls [View article]
but will you're study help you pick winning stocks? No, not really.
Earnings Quality: Why It's So Important Now and Which Stocks Are Suspect [View article]
'Take Off' with Boeing Option Combination Plays [View article]
'Take Off' with Boeing Option Combination Plays [View article]
While I agree with your math, I think what the others are trying to point out is that it's "the wrong math". My broker requires only $3,500 on my trade but $12,400 in margin for your trade. This means selling 2 puts rather than your trade generates about 3 times the return-on-margin (43% vs 14%) (This is the "return on investment" because you have to have $3,850 vs 12,400, respectively, to make the trade).
The only reason to do a buy-write is that naked puts aren't allowed in IRAs.