RECENT POSTS
- Your First Move For Tuesday May 29th
- Chesapeake Should Rally Into $20’s: Pro Trader
- Najarian: Yahoo! a Must Own Stock
- Marc Faber: 100% Chance of Global Recession
- Your First Move For Friday May 25th
- Desperately Seeking Dividend Yield
- Tech Is Trying to Tell You Something: Terranova
- Charts Suggest S&P Revisits Flat on Year: Top Analyst
FAST MONEY FEATURES
FAST MONEY POLLGet in the post game. Respond to our "Question of the Day" right now.
FULL SHOWSMissed an episode of Fast Money? Watch the latest show here.
FAST MONEY PODCASTS
Download Fast Money onto your MP3 Player.
FAST MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
SHOP FOR FAST MONEY MERCHANDISEGet your game on with Fast Money gear.
FAST MONEY SLIDESHOWS!Check out our scrapbook. These "pix" are guaranteed winners.
NEWSLETTERSign up for our daily newsletter!
Are Options Accurate?
Text Size 
Web Editor
 |
How reliable are options as a way of predicting stock movement? Here’s what the options markets said about Oracle and Research In Motion ahead of earnings. Were they right?
Research In Motion
Ahead of earnings the options volume in Research in Motion [RIMM
Loading...
()
] appears to be bullish, explains Jon Najarian. It seems like many more investors are betting on the upside. I expect good news after the bell.
Oracle
Conversely options action ahead of Oracle [ORCL
Loading...
()
] earnings are negative. There’s a combination of calls sold and puts purchased. I expect this stock to pull back.
How accurate is your methodology?
Big Thunder, the system that I use for tracking, is typically accurate 80% of the time.
Let’s see!
*****
updated after hours
- Research in Motion reported profit and sales that were both below analysts' estimates, and the company's shares dropped about 8 percent in extended trading.
- Oracle reported a profit that rose 27 percent over last year and topped analysts' estimates, while sales beat expectations as well. At first shares rose in extended hours trading but ultimately turned lower.
Looks like this might be that 20% of the time that options aren't accurate.
______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Data is a real-time snapshot *Data is delayed at least 15 minutes
