Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

GILD, AVID and LEXR WE DID IT AGAIN! (we never picked up calls in either GILD, AVID or LEXR) ALL THREE were looking for continuing downside. LEXR should pull down SNDK after hours which is why puts were and will be hold for SNDK through a target of 55. GILD 6 days of downside continue to a happy conclusion.

LEXR emailed 1:28 to subscribers

CLS, LEXR and AVID straddles (more puts!!) for tonight (CHEAP) POSSIBLE BIG MOVES-

CLS is usually a GAPPER and CRAPPER.
CLS the February 17.50 CLSBW calls are only $1.05 YOU MUST HAVE the puts as well as CLS might sell off heavily the February 17.50 puts CLSNW at $0.50 and $0.85 put they are probably higher now.

SEEING potential PAIN for AVID tonight as well February 45 puts AQINI are 1.20 already but AVID can go even lower (similar to VRTS) . IF WE SEE ANY EARNINGS RUN around 2:00 to 2:30 a few February 55 calls for "insurance" at $1.25 AQIBK might be prudent but I see PAIN HERE.

THESE ARE NOT SECOND TIER like CHIR or MEDI but could be first tier. Still we should wait for VRSN and/or PKTR but of course you might be holding the puts in these while waiting or a short.

LEXR another potential SNDK here SNDK has a p/e of 43.8 and LEXR has a p/e of 45 LEXR 15 MARCH PUTS (EQGOC) are $1.35 The February 15 puts EQGNC are only $0.90 and cheap to get a LEG into a possible mover to the DOWNSIDE. FOR INSURANCE? I would invest VERY LITTLE.. perhaps a few contracts of the February 15 EQGBC at $1.30 or just forget the insurance on the upside. LEXR looks pretty awful.