Short Bursts of Risk Exposure In Options Create Opportunity in Ameresco Inc – CML News

PrefaceWith the market’s direction becoming tenuous, we can explore option trading opportunities in Ameresco Inc (NYSE:AMRC) that do not rely on stock direction.Over both the most recent bull market and the last bear market from 2007-2008, for stocks with certain tendencies, there has been a shrewd approach to trading pre-earnings volatility with options.

The goal is to find trades that expose risk in short-bursts of time, with out-sized historical gains relative to historical losses.

This approach has returned 165.8% with a total holding period of just 33 days, or an annualized rate of 1,833.8%. Now that’s worth looking into.