Help requested on protecting a long term position from earnings report

Discussion in 'Options' started by noaveragingdown, Feb 6, 2011.

  1. spindr0

    spindr0

    Everyone at the buffet table has their own limit on how much they can eat :)

    For my own taste, I'd prefer not to own shares during EA but given a collar situation, I'd sooner overwrite calls further out of the money (or sell some add'l bearish call spreads on top of the CC) and buy a put closer to the money thereby limiting more of the potential loss more yet taking in a decent equity gain if a pop occurs. That's probably why I take antacids :D
     
    #11     Feb 7, 2011
  2. CSCO down almost 10% in after-hours. The traders who have stop loss orders get flushed out tomorrow at the open.

    Hopefully you either bought puts or sold calls on your 4,000 shares. Looks like "three times" was not the charm, unless a trader was short before earnings.

    Best of luck.
     
    #12     Feb 9, 2011
  3. sokoban

    sokoban Guest

    #13     Feb 14, 2011