Tuesday, July 22, 2008

Buys... On Earnings... "AAPL Reverse Fade?"

EMC: aug15calls & sep12puts (update: benefitting from VMW whacking)
ETFC: sept4put
JBLU: aug5call & dec5put. i only found out later that they already reported upside. boring... wasted time & $.

SKX options. not enough volume, so didnt bite
EW calls, ran out of time... wanted an Aug call.
VMW puts, i positioned EMC puts to benefit from double whammy.

AAPL: i thought of buying a call early in the session. it was slammed only because of guidance. its a running joke when AAPL gives that part of its earnings report, sure enough the buyers all eventually came because the stock was cheap. an option position that would have been sweet was buying an aug165call@1.25 at the open. it was worth 10.00 the previous day, but now sits at 5.35. you can do the math. but its a lesson worth remembering for next Q. hmm is there a term for this? Reverse Fade? Anyway, this seems to be safer (maybe more than a strangle) than buying prior to earnings since a direction has been established.

HOT: i love the buying in hotels. i dont know if the bad numbers from HOT will be the same as MAR about 2 weeks ago. but how different can they be. i may in fact position MAR in place of HOT. either way i want tons of buyers - so i can buy puts of course.

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