Not quite. If you remember, I replied to your comment a while back: So I've been bearish fundamentally but bullish based on historical earnings related activity- history doesn't necessarily repeat all the time. Rather than be short and risk losing a ton, I've decided to take some chance and give myself a better risk-reward if I'm right. I'll risk a very small amount on the back month put and see if it works out. I won't lose out on much if I'm wrong. But if I'm right, I stand to make a handsome profit- goes towards my tuition anyways LOL!
Based on your flip-flop from a few hours ago take a look at: PCLN @ $590.00 Buy Mar16 2012 565.00 Puts @ $16.20 Sell Mar16 2012 530.00 Puts @ $5.70 Debt about $10.00 Move the strikes according to how far you believe PCLN will drop, and how much you are willing to risk.
Listen bud, A kid can do that analysis. I'm not THAT new to trading. And it's money I'm talking about. I'm not ashamed of changing my opinion at a whim. Hell tomorrow I might go long straddle. I don't care as long as I think I have an edge with it. Besides, I when I said I expect it to go up overall- I MEANT IT! "But babutime, lol, you're contradicting yourself, lol" Yeah, it seems like it. But I'm looking at the first moment- the expectation which is heavily lopsided. I wont elaborate much on that. The fact that you were so concerned about my flip-flop (which really was me trying to find some good risk-reward scenario) shows that perhaps you're not so good with making money- being married to ideas is the the first sign of an emotional trader.
Based on the above information I recommend you stay away from a PCLN earnings trade, it's too hot for you. Just sit on the sidelines and perhaps try a trade for next earnings when you have more confidence.
And how will things change in the next trade? It's about how comfortable I am losing a couple $100 bucks. Which I am. As for it being "TOO HOT", I've been through a few earnings trades already- AAPL and NTAP to name a couple. As for the "information above", you obviously didn't understand my point so I'll leave it at that.
Depends on the info you provide. $200.00 maximum risk? That changes things a lot on a $600.00 tech stock just before earnings, your options have been severely limited. Your looking at spreads only 1 strike apart or long DOTM. Best to stay clear of PCLN with your meager budget, take it off your watch list
O well, Just found out I can't even trade because I made some pattern day trades last week. I'll have to wait a day before I make some trades. Funny! This is exams week for me anyways so I'll just step aside. Have one long call position in AAPL. And thats pretty much it.