Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

Remember folks SELL THOSE REPORTS. We had 2 helpings of NVLS puts (yes we did pick up some insurance longs but just a bit). Folks holding through reports or even just BULLISH and blowing the horn of bullishness can cause a lot of trouble. We maintain that this is an earnings driven market and we are for the most part SELLING THE NEWS and buying the rumor (which we except us! Nobody had it on a newsletter watch list except marketgems or expected a HUGE move (we had the same with SNDK actually daring to pick up PUTS in the opposite direction after selling 75% of the 70 calls) Only a few posts with long humongous lists of reports that are coming out (what are you supposed to do with all those companies reporting exactly?? buy them all or short them all??)

call "anticipatory upswing"). We do pick up straddles mostly because in BOTH SNDK and SLAB we EXPECTED HUGE 10 point moves in either direction. Nobody called SLAB on these threads yesterday


SLAB LOG started off with the February 45 puts
Mon Jan 26 09:27:33 2004: alfonso [0/] Msg:SLAB the play is for FEB 45 CALLS if we run to upside, then adding some FEB 45 PUTS

Mon Jan 26 15:49:34 2004: marketge [0/] Msg:SLAB is getting killed pretty weird.. might be something really bad coming up.. February 40 PUTS and February 50 calls @ $0.80 might be something in case we get another SNDK here.. for only $0.85 to $1.00 or so.. Lord knows what is going on with SLAB
Mon Jan 26 15:49:41 2004: marketge [0/] Msg:but I want in


We had the 45 puts much of the session but the calls were just too cheap not to take advantage of near the end of the session which was our strategy from the last few sessions (on both NVLS and SLAB)