Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

RIDDLE: What is the difference between LEXR and EBAY?
http://www.marketgems.com/haminahamina.wav

Both hit all time highs -- an all time high seems like a good place to sell and take profits. Picture this: A downgrade on EBAY on valuation when you wake up in the morning. What kind of upside can EBAY see from here? A nice downgrade could cost it 3 to 5 points and ultimately like last quarter -10. What do we do? Well for one I now have a new strangle on EBAY, and will play it like QLGC only bounces off the INTRADAY CHART and shorting spike highs. If I wake up and EBAY explodes down, I won't care I have the puts. If it moves up to 70, I don't care I have the calls, both picked up a little discounted.

Does that sound like the hamina_hamina trader (i.e those that are long when the market is up and short when its down...but tell you ONLY when the coast is clear), well maybe it does but for strangles which are as rare as white leopards, that's the only way to fly. Played EBAY's harp in both directions and its just the beginning. Looking to aggressively short rallies in that one like we did in Late July and early September. If we can't well we have the calls, there is no crystal ball and the game is not who calls the right direction but who is holding the money bag at the end of the week.