Trading Report Tour

Take a quick overview 'tour' of our Trading Report. This section is to give you a flavour of the various sections and methodologies behind this weekly report designed to help our members make money in all market conditions.

Before we get started...

How to use the Wise-Owl Trading Report: As investing in derivatives is intended for intermediate to advanced investors only, we have labelled all strategies with the following headings.

Level of Difficulty: This gives a rating on the level of difficulty associated with the strategy. Generally, the more advanced strategies contain the highest levels of risk.

Expected Knowledge: This is the minimum expected knowledge recommended before investing in derivatives. We encourage all our members to gain as much experience and education in derivatives as possible before investing.

The Report

The report is broken up into the following sections: 

Summary Of New Recommendations

The "Summary of New Recommendations" table provides the snapshot of the current weeks recommendations outlining the relevant stock, strategy type and preferred trading instrument.

Recommendation Strategy



For each recommendation, regardless of strategy type or instrument, we will summarise key Stock information and lay out the "play" here for you.

The company. Its market information, and what the strategy style and instrument to trade to do it are featured in this table.

After this we will write up the strategy in plain English for you to easily follow, and detail out our Fundamental and Technical views on this stock.

Implementation Strategies

 Once we have detailed out the strategy, we then go into the detail on the implementation strategy we recommend - in other words, the detail and instruments best suited to take advantage of the opportunity presented in the strategy. There are several types of "plays" we will recommend.

A) Trading Strategy suited to: CFD's & Vanilla / Trading Warrants



The "trading strategy" is primarily based on technical analysis - the study of charts and price action movement. This method of examining share prices is used in the investment industry to provide insight into short-term trends, money flows and market behaviour. Over the short term markets are heavily driven by the forces of psychology and sentiment to which technical analysis can add a level of clarity.

Support is placed below the current share price and resistance is placed above the current share price. The general trading horizon of these picks is one week. For trades to the upside, trades are only limited as the stock trades above the indicated resistance. Downside trades are only initiated as the stock trades below the indicated support. Should an upside trade fall below support before trading above resistance, the trade is abandoned completely and similarly for downside trades. It is important to note that delta and time decay are key constants for the warrant and option scenarios, as are interest charges for a CFD position. Any person who does not know what delta and time decay means is definitely not suited to this section, as further education is required.

B) Dividend Play suited to: Instalment Warrants and CFD's



Wise-owl.com's dividend play is a popular strategy where instalment warrants or CFD's are purchased over a stock in order to receive a dividend (or cash advance for a CFD*). This strategy can effectively double an investor's dividend returns. If a share is paying a 5% dividend then the instalment warrant can usually be purchased for approximately half the price of the underlying share. This allows an investor to invest the same amount of money to own double the number of shares and consequently receive double the amount of dividends. In effect the investor may receive a 10% return on investment by purchasing the instalment warrant.

This is a very popular strategy for our DIY Super members.

C) Writing Covered Calls: Options

This section is for Intermediate-to-Advanced investors only. Only members who own at least 1,000 shares of the stock discussed can take advantage of this section. Investors who are willing to sell at pre-determined levels can sell call options to general additional income. Any person who does not understand options should be discouraged from this section, as further education is required.

Each week a stock is recommended that we believe is the ideal time to lock in profits for a particular stock using the exchange traded options market. As advanced to intermediate traders, it is up to the reader to decide when to exactly enter and exit this strategy as it is impossible to accurately guide you over this period.

D) Current Technical Outlook Instruments: CFDs, Warrants and Options



This section of the wise-owl.com report is designed for members who are active traders and also for Advanced Traders who trade options, warrants or CFD's.

Each day, money moves in and out of the Stock Market, causing share prices to move up and down over the short term. The table below shows our short-term view on each stock based on Technical Analysis. The highlighted stock is wise-owl.com's pick of the week for which a trading strategy is presented.  

To head to the Trading purchase page, click here