The lessons of the Dec 2013 OVTI earnings announcement
Don't gamble before earnings, have a strategy.
1. Hedge your position if you are long. You can usually write covered calls and receive good premiums. The time value of the calls will evaporate the moment the news is out.
2. Don't trade after hours unless you really know what you are doing.
3. Listen to the conference call. Carefully.
I am not preaching. This is just stuff that I have learnt, the hard way.
Yeah, I was looking at selling some covered calls. Looks better now with the benefit of 20/20 hindsight. While we now know we could have pocketed a 4% premium selling Dec 17's, at the time it felt like selling a lot of up side cheap. With my small position of 20 contracts, the most I could have pocketed was only like $1200.
I'll give you a thumbs up on that bernard. I bought at 16 day of earnings. you know the rest of the story, buy what you don't know is I bought the same shares after market and into the opening. Then sold those shares before market closed at 15.79 Then bought them back at 15.55 Now I can ride the storm.