Is Fundamental Analysis Dead?

By @FundamentalAnalysis / January 15, 2015 / www.youtube.com / Article Link


http://optionalpha.com - As we wrap up our discussion on options trading in this section most of you will undoubtedly ask if fundamental analysis is still a top factor in determining which securities we trade it in the future?As a reminder fundamental analysis is the study of a company's earnings growth, P/E ratios, dividend yield, etc as a predictor of future stock growth.In the most basic terms I do consider fundamental analysis to be a "non-factor" when trading options because if we are trading a highly liquid security then nearly all information available in the market is efficiently priced into that securities current stock price already. We can gain no additional edge.Therefore it is a complete waste of our time to do fundamental analysis before making a trade that typically only last about 30 to 60 days out.Whether you agree or disagree with me know that I was an analyst on Wall Street and then I have successfully traded for the past 8 years without doing any fundamental analysis.==================Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast==================Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook==================Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=...==================Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-t...==================Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here==================Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars==================- Kirk & The Option Alpha Team

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