Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

NTES also "anticipatory upswing" today and closed quite a big bunch of puts and short (with SOHU) It was hard getting folks to buy some NTES calls but we did!! The hedge turned into something more once the "anticipatory upswing' began in earnest. This was a long term put/short play (including SOHU which we called over today as well) It was easier buying calls because we got 7 points target in NTES to 40.

INTRADAY update and trading room log for NTES:
Tue Feb 17 14:53:51 2004: marketge [0/] Msg:NTES and SOHU
Tue Feb 17 14:54:57 2004: marketge [0/] Msg:NTES its difficult buying call options when we've been down so much in SOHU and NTES and you probably shouldn't for SOHU.. but you need a hedge in NTES.. we're looking at 5 points in either direction. NTES was a big coup last quarter and is likely to bite down however LOOK AT CHINA
Tue Feb 17 14:55:49 2004: marketge [0/] Msg:this is possibly what might the best scenario for NTES although I don't expect a gap up quite that high.. STRADDLE IN NTES.. but lock in profits in the 40 or 45 puts whichever you have the "bird in hand" strategy
Tue Feb 17 14:56:20 2004: marketge [0/] Msg:keep a position in puts but about 10 calls so if NTES moves a buck it will be 1k for each buck




We got our target of 40, locked in the 45 and 40 puts and a long running short, but kept a straddle in NTES (nothing in SOHU)