Earnings are going to crush tomorrow morning. Simply applying the ratio by which they beat the last quearter to this quarter and you have a huge win. If I'm right, sell the rally in the shares.
Still, you had correct understanding that even on good ER and potential pop after ER - the right way would be to fade - credit cards are the next disaster to happen.
Thou - next time - one word for you - STRADDLE into ERs.
I actually didn't own the name at all. I actually think that MA is one of the cheapest stocks around, given they take no credit risk, and the key business driver is the switch from paper money to plastic. I think the straddle into earnings idea is a good one, especially in this type of market, with credit card companies in partiular.
I got two words for your STRADDLE, Volatility Crush. Even if you had done a straddle at 270, about where it closed, the day before I don't hink it would have made any money. Don't you guys read Doc's blogs? Jim
Comments
Follow commentslocogmac posted July 31, 2008 (06:42AM)
AMEDS posted July 31, 2008 (12:05PM)
DavidDT Trading-to-Win.com posted July 31, 2008 (01:17PM)
That happens - cost of doing trading business.
Still, you had correct understanding that even on good ER and potential pop after ER - the right way would be to fade - credit cards are the next disaster to happen.
Thou - next time - one word for you - STRADDLE into ERs.
AMEDS posted July 31, 2008 (02:39PM)
Jim Jackson posted August 01, 2008 (02:08AM)
DavidDT Trading-to-Win.com posted August 03, 2008 (04:38AM)
Jim Jackson - who in the right mind will position himself for ER the day before ER?
I thought I did not have to state obvious.
And beside - just going long calls/puts the day before ER even MORE expencive due to the same high IV
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