A quick look at options pricing makes me think DIS will probably drop $2-$4 after earnings are announced. But it should recover within days.
Yes. That is an astute observation.
I think the prudent play ahead of earnings is to stay on the sidelines. DIS had risen considerably ahead of astronomical movie expectations. Since the high end was NOT met for the Avengers, there may be a small drop, after earnings.
Bought June calls. I may regret it..but I love the game.
BTW, I picked up some GOOGL calls today when GOOGL was around $574. I think it'll pop higher by Tuesday.
When stocks pop, they tend to continue popping
I dumped my NFLX calls within 5 minutes of the open, the day after earnings. Although I made money, I left much much more on the table. NFLX continued to go higher in the next few days.
I didn't make the same mistake this time. Although it was tempting to dump my AMZN calls near the open, I held on. I figure AMZN will go higher in the next couple trading sessions.
Maybe not today. But many times when a stock pops, it continues to pop for another day or two. I think if the overall market is favorable Monday or Tuesday we could see it.
So I bought some calls today.
A little color on the numbers and strategy is all we need. I would have been more worried if FB had dropped 5%-10% immediately. But what we're seeing is a small knee jerk reaction. FB will reverse after the conference call today, or tomorrow...
Yes, this is what's going to prop FB higher. The slight selling happening now is just the knee jerk to the slight revenue miss.
Nope. FB is actually holding well. This tell me that it wants to go higher...probably as soon as the conference call is over. NOBODY want to dump it.
Exactly. The way FB is acting in AHs, I actually think it will go higher after the call. The slight revenue miss is not a big deal.
I own Oct calls. Normally, I would sell them before close.
But I've decided to hold them. Oct is a long time for them to recover, if FB drops after earnings.
But let's hope that a pop to $90 happens.
Good luck to us all.
CMG is getting tired. The strategy I've employed is buying calls 1-3 days ahead of earnings announcements. Then dumping them BEFORE earnings are released.
I don't make as much...but it's steady money. Got out of CMG calls a couple hours before close today. Then bought FB calls. I'll dump them by close tomorrow. I also hold BIIB calls that I'll dump by Thursdays close.
The increase in IV and maybe a small pop before earnings are released are what I count on....
I own Aug calls, so I'll ride it out. Hopefully, we'll see some recovery in the next 4-8 weeks. I'd like to unload my calls with at least 2 months left 'til expiration. If I can cut my losses and/or make a profit by then...it would be great.
NFLX turned out great. I've got two more long call plays next week: BIIB and CMG. I may dump BIIB sometime before the earnings report on 4/24, but after their clinical data presentation at a DC conference (4/21-4/23). Also, I may dump CMG before close on earnings day (Tues), especially if it pops a little before they're released. Usually, I like to profit on increased IV and the pre-earnings pop when holding calls.
My holdings in NOW calls are small, so I held through the report. I think they could be in the black within the next 8 weeks.
Rule of thumb for me: I like to write short term call/put options(1 month or less) regularly. And I buy long term options (usually 3 months to a year out). It's worked wonders for me over the past 15 years.
Everyone loses once in a while. But you are pathetic because you state the obvious after the fact. If you had taken a position (bull or bear) ahead of earnings, there would be some value in what you say. But surfing message boards in HINDSIGHT without any skin, just to chime in, is pretty lame.
I can take a lot, pumpers or dumpers; but people like you...I have no patience for...