It was suggested to sell calls before earnings. If you had you made money. I am sorry for your loss
You should never sell calls on any stock for under $10 a share...Once you factor in the benefit of free tax deferred cash the return is actually higher than the obvious return.
Not too long ago it fell to $26 on downgrades.
But we said .."WE have seen this movie before....now up $18 from that low.
70 million/ 5.75 billion = 1.2% shares trade of outstanding total.
This puts everything in prospective
So how does 60 to 70 million shares a day move this stock.
Hedge Funds time their trades for slow periods of trade. They look at stop losses; figure how many shares it takes to nose dive a stock.
If you buy options ( i never suggest to) and the stock runs you can sell a higher strike price in the same time frame to recoup your initial principle, giving you a free play with "limited" upside.
Most sell half to do the same after a move
no move out into AUG calls...earnings are in AUG time frame.
Then if the stock runs..sell strike prices above $135 to recoup principle....then you have a free play
it is undervalued just over traded.
1. It puts everyone on a level playing filed.
it is FREE SPEECH...no conspiracy or collusion.
It is when people get cute is when they get in trouble!