OK - So I took a small gamble and bought 10 Jan. 65 Calls today (before earnings), filled at $ 3.30. Luckily, the stock is up $ 8.00 post market. Here's the question: How would you manage the position when the market opens tomorrow providing RIMM opens in the $ 71.00 area? Do you: 1. Take the profit and run on the open? (Thinking "hey, it 's a gift"). 2. Wait 15-30 minutes into the session so all shorts have a chance to cover - thus propelling prices higher? 3. Sell 5 lots on the open, and ride the rest? 4. Or? (Your suggestion here). Thanks in advance for your input! Cheers and happy Holidays to all. Howie
1) If you admit that you are "gambling" the best choice is (1) 2) (4) also deserves consideration. If you are a "good trader", you can short-scalp against the eMini-Nasdaq overnight in case anything weird happens to the downside, overnight.
Thank Santa for looking at the wrong week on the calendar and take at least 50% off. Perhaps sell a Jan call with a bid closest to your purchase price to lock in a free trade on a few? If you're brave, you could fade the gap in the AM as well. Expiration tomorrow and holiday next week will probably lead to some market weirdness.
Here's how I would play it. Ignore the first bar. Then watch each minute bar, and if it goes below the previous bar low think about getting out. If it's not going parabolic, or went parabolic and the pattern is beginning to roll over, I would get out.
See Fslr. good luck also fslr had a lot of shorts, they may not be so nice. I'd take immediate half off, and tight stop on rest, tight...
Thank you, Gents. Great replies! Most if not all suggestions were excellent. I will probably take 1/2 off within the first 10 minutes, and initially risk $ 1.00 premium on the downside. If the market continues upward, I will trail the "stop" in .50c increments until hit, oco MOC BTW, I do not normally gamble like this on earnings announcements, and I do not recommend it. (ok newbies?) Thank you all again.
Now you can take some of your gift winnings and "invest" them in lottery tickets. I'd "diversify" my portfolio by spreading them out over various $100k Pick-6 and $100 billion Powerball jackpot types to give an adequat risk-reward ratio. I'd "leg" in to my position by purchasing the tickets at various 7-11s and Quickie-Marts, both inside and across the state line. You're on a roll, so keep rolling!