A stock that will drop today

Discussion in 'Stocks' started by hajimow, Feb 15, 2011.

  1. hajimow

    hajimow

    Buy ADI 40 March PUT. Earning will come out today. I believe it will drop below 39. This is a wise low risk high return trading.
     
  2. hajimow

    hajimow

    To do it in high volume and lower cost, you can sell 38 PUT to reduce the cost .
     
  3. hajimow

    hajimow

    I hope you took the advice. It is working. Volatility will be down in options after the earnings but still buying PUT 39 will be profitable. DYODD.
     
  4. Round numbers, ie 40, are potent


    Attached are weekly and monthly charts. Noise removed. IF there's a drop "below 39" it's to pick up inventory. Translation, better sell to close that put in "short order" at 39ish.

    The fascination with selling short (or leveraged derivitives with time decay) is itself, fascinatiing.

    EPS reports are to move paper. It's........eh................eh........advertising.
     
  5. ????

    Option closed at 0.40 - 0.50 down from 0.70. Stock is up slightly after hours.