Rally by how much??? 15-20 points? More? Depends a lot on the general market. It was rallying earlier in the day then the general market just tanked taking PCLN down with it. There must be some institutional selling to cause this downdraft. Higher than average volume.
Don't know. I sold to open 30 contracts March 14 (1315P/1295P) Spreads on 3/10. At least my potential losses are capped. I also sold to open 30 contracts of March 14 (1385C/1405C). Basically, I sold the Iron condor spread.
QIHU March 7th 125Calls down 3.95. Bid 0.1 Ask 0.25. Those who held overnight got whacked good.
Sell on the news, even if it is good. If it's bad, it craters by 20. Last earnings release in November, 2013, QIHU had a +36% Earnings surprise and stock dropped 8 the next day.
According to Barron's, JP Morgan thinks QIHU is going to miss earnings. I wonder how much this is going to drop? In 11/2013, QIHU had about a +35% surprise and the stock went down $8 the next day.
You will keep the premiums. Bogus analyst comes out today increasing target price to 120 today just to prop up the price so that on Friday, the tumble won't seem as bad after the earnings are released Thursday after the close.