Trading Momentum into Earnings Optimism With Options in iRobot Corporation – CML News

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PREFACE
There is a powerful pattern in iRobot Corporation (NASDAQ:IRBT) stock ahead of earnings that has meant a staggering return in the option market. The strategy won’t work forever, but for now it appears to be a momentum play.

One of the least recognized, but most important phenomena surrounding this bull market is the amount of optimism, or upward momentum, that sets in the two-weeks before an earnings announcement.