Hi all, Wow, AMZN announced last night record earnings, but that didn't meet some expectations. Today it is around 15 points lower. This emphasises the importance of being aware of the coming earnings as well as keeping in mind a company with a higher PE can react more violently to surprises. NFLX is also an example that good news can be a real boost. But these are not where you should bet your farm. Avoid these important spots where a stock can go either way. Someone asked a while back how to play a coming split. To me a point like that is another place where it is to much of a guess.
A good play someone mentioned a few days ago was Sears [SHLD] I did some puts with the 62.5 strike. I like this but I am keeping an eye on it. I closed some puts with Isrg for a wash. I didn't like the way things looked.
Another item is EGYPT. Do be careful with world events. The market does not like uncertainty.
Keep up all the good ideas but be cautious. These are touchy times. We are over half way through the earnings season but still important stocks to announce.
If opening a new position please leave lots of cushion. Take lower profits during these times. Don't hesitate to close a position that is going south. Also if you have profits and the stock turns, don't hesitate to take profits.
1 comment:
Currently only have FCX open; I didn't do thorough enough homework & missed the fact they're going to 2:1 split on Tuesday. Even with the 1.3% drop in price today, the option price is basically where I sold it yesterday. The put/call ratio is still dropping (less fear of continual downward pressure & therefore less demand for puts being BOT, I venture??).
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