Option Investment Strategy based on Technical Analysis at Earning Announcement
Core business of PT. M is a stock & options investment education in US capital market. The firm expands its business to gather more revenue by extending its education material. Earning Announcement which regularly happens each quarter is usually used to fulfill this objective because it can mak...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/12207 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Core business of PT. M is a stock & options investment education in US capital market. The firm expands its business to gather more revenue by extending its education material. Earning Announcement which regularly happens each quarter is usually used to fulfill this objective because it can make gap price between close price and open price on next day for certain stocks. This model investment could bring not only high return but also high risk so an appropriate method to manage this investment model is required. The usage method must cover selection of stock which would be invested, prediction of gap trend at earning announcement base on market sentiment which is measured by technical analysis then choose option investment strategy that would be used to optimize profit. Investment strategy is chose after its past performance result were evaluated and statistically validated. The result of this research can be inputs for extension material because the amount of participants would be increased. This investment strategy can provide return more than Central Bank of Indonesia's Interest Rate and Indonesian investors can afford the capital need. The method application could not be used to all candidates although the selected stocks have several similar characteristics. In this research only 4 from 7 stock candidates are compatible to use the method. Opportunity to gather more profit can be increased by adding quantity of stock candidates after these new candidates are tested about compatibility with the usage method. Gap trend prediction is not only done by technical analysis but also fundamental, news, and option chain in order to increase accuracy level. Implementation more than only one option strategy can be considered after doing comparison market condition at that moment with each option strategy characteristics. <br />
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