Monday, October 1, 2007

Stockwars – The Options investor strikes back (Part 1)

Yo, earnings season is round the corner and officially kicks off when Alcon (AA) kicks off announcement on Oct 9 after market closes.

To the Options Investor, what are the options to look out for? Here’s a list that I’ll be putting on my watch list:

YUM (Yum Brands)
-Scheduled to report Oct 8th after Market closes
-Looking to enter for the 32.50 or 35 Oct Calls on Oct 8th before market closes

Mon (Monsanto)
-Scheduled to report Oct 10th before Market opens
-Looking to enter for the 85 or 90 calls on Oct 9th before market closes

Strategy: If make money, exit in first 6 minutes. If negative, go for a bear call spread if level II quotes are selling 2 times more sellers than buyers.

What's your recommendations?

No comments: