Some of you probably remember a trade on AMZN that went badly after an earnings report. This was not the first time form me, so I decided to think about the problem because my trade on IDCC may be ruined if I don't do something about it as earnings approach.
Take a look at this video clip and share your thoughts:
http://www.pathometrix.com/Movies/Earnings1.mov
By the way, if you have iTunes installed in your computer, you could download any or each of these files and play them in your computer or even your iPod (if it is video compatible). I hope this is something you can use:
http://www.pathometrix.com/Movies/
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1 comment:
Juan,
The PCCRC combinations you have shown are usually based on a buy of 2 back month Puts and Calls, with a sell of 1 front month Puts and Calls.
In some cases you have bought 10 combinations, so you have bought 20 back month Puts and Calls, with a selling of 10 front month Puts and Calls.
We are now 2 weeks to expiration, when the time decay on the front month is now at its highest, so why not sell more front month Puts and Calls?
Starting with a 2x1 combination, create a 3x2 combination or perhaps 4x3 until rollover? Obviously depending on the selling premium available?
Just some further thoughts and ramblings on this from me...
**Smiles**
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