When it hit the top of the channel at 180, the big traders sold out. They are probably going to use their money for the Twitter IPO.
It looks like the big money has just left the party.
However, there is still the possibility of a rally today after hours. Your only risk is having to wait until tomorrow to close out your position. Remember what had happened to NFLX.
when looking at the 2 month chart. I am going to close out half of my long position now. Most of the long traders playing this pre earnings rally are not going to stick around to risk their profits if their entry was in the low 160s. After earnings, it may want to retest the previous high. Lets hope this will not be a repeat of what had happened after the last earnings of NFLX.
The price action after earnings could be similar to what had happened to NFLX.
If so, then sell into the AH rally.
After the Alibaba IPO, would this be a taxable situation for Yahoo? Would Yahoo be required to sell their stake in Alibaba and pay the taxes?
A company like Hyundai is very innovative. The could easily build a similar vehicle fo 25 % less, especially if produced in volume.
No. You will not need to buy any long term leaps.
I recommend that you do not buy options too far out in time in order to minimize drawdown in case the share price declines. The idea is for both the put and call to simultaneously erode to zero if the share price remains range bound.
This strategy is one of the best ways to play DNDN for a big move up. As long as the share price remains above 1.50, you will not incur any loss. If you do the spread with the Feb 4.00 calls, then any amount above 4.00 would be your profit since your cost basis is 0.00
For those who are concerned that the share price could collapse to 1.00, try the long Feb 5.50 call and short Feb 1.00 put spread for a debit of close to 0.00
DNDN usually rallies just before earnings.
At least Monday's gap has now been filled. Maybe we will see some upside movement from here.
Today's low is 25.94. Maybe 25.92 will hold as support, if only temporary.
Bought some more at 26 for a trade.
At the current price of 2.52, the long Feb 4.00 call and the short Feb 1.50 put spread could be done for a net cost of 0.00
This would give you enough time to hold through the Jan earnings. When this expires, then just put on a new spread such as for May 2015.
For DNDN, it is not worth the hassle of holding shares and watching the daily ups and downs, unless you are swing trading to make a few bucks.
As long as they have enough cash to keep the company operating, the share price should stay above 1.50
The only risk would be if a buyer is not found and the company goes bankrupt.
But then Google does not pay a dividend and is doing great.
Rather than play financial games just to raise the share price, Apple needs to consider what they could do to improve their revenue.
Both options have taken a beating due to the IV crush after earnings. If you are planning on holding the Jan 600.00 calls, then take a look at the price of the Dec 600.00 calls. If the share price remains the same in one month from now, your Jan calls will have lost half of their value. Consider doing a spread, such as the Jan 550/575 call spread for a debit of 6.40 However, this will limit your profit to 18.60 (290%). This play will give you a higher probability of success compared to just owning open OTM calls.
Here is a strategy I had recommended to some of my friends who are anticipating a 2X - 5X upside move in DNDN.
Buy the Jan 4.50 call and sell the Jan 1.50 put. If done as a spread, your net cost should be around 0.00
In order to minimize drawdown in case the share price drops, it is best not to go out too far in time. Just put on a new position when this one expires. The good thing is that this will cost you nothing as long as the share price remains above 1.50
Just like he had done with NFLX.
Maybe this was the strategy, to give a weak guidance so as to make the shares tank. Then Apple could buyback shares and Icahn could add to his position at a lower price.
This is a brilliant move by Herbalife. This is basically an endorsement that all of their products are good and safe for human consumption.
"OGX bonds fell in value at a breath-taking pace. They were issued in the last two years and yet now are trading between 7-12 cents on the dollar. Many of the current holders, according to people familiar with the situation, bought at face value.
In May of 2011, OGX borrowed $2.56 billion with a coupon of 8.5 percent. The unsecured bonds were due to mature in 2018. Less than a year later, as OGX's offshore struggles mounted, the company went back to the capital markets for even more-borrowing $1.063 billion with a coupon payment of 8.375 percent, also unsecured, and set to mature in 2022.
OGX missed an interest payment on the latter on Oct 1, setting in motion the road to a potential bankruptcy filing. Batista's 30-day grace period expires at midnight on Halloween, Oct. 31."
This appears to have been a highly speculative investment for Blackrock.