AI
Tuesday, February 03, 2004 6:48:46 PM
CSCO anti-climactic, the put side of the straddle will move up but we got our "anticipatory upswing" (only about 1.34) already this week (see chart below)IN FRONT OF THE REPORT. Why folks put all their eggs in the after earnings basket is illogical. The point of the earnings season is to get the "entire" anticipation, the downside, the upside and for the "gilding of the Lily" a move through the report. Now we wait for a potential gap play here as well, maybe we gap n crap (hopefully!!)
The guessestimates are worthless unless you are fully committed to a strategy that harnesses the earnings report for a gain. We did have CSCO on our "anticipatory upswing" watch list and we did get the upside, told folks to lock in especially after yesterday's mid day rally, and come into the report with a 'tolerable' size straddle because like KLIC, RFMD, AMKR before we get the gain before the report, its the pullback that gets the most attention after the report.
This afternoon was the FIRST TIME WE called puts since late last month and we were careful to emphasize that the chart looks like a continuation of downside is the predominant pattern.
The guessestimates are worthless unless you are fully committed to a strategy that harnesses the earnings report for a gain. We did have CSCO on our "anticipatory upswing" watch list and we did get the upside, told folks to lock in especially after yesterday's mid day rally, and come into the report with a 'tolerable' size straddle because like KLIC, RFMD, AMKR before we get the gain before the report, its the pullback that gets the most attention after the report.
This afternoon was the FIRST TIME WE called puts since late last month and we were careful to emphasize that the chart looks like a continuation of downside is the predominant pattern.
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