Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

4 straddles: SNPS, NOVL, ZRAN, ODSY and CHK (ODSY and CHK for aggressive traders (CHK was also suggested a gap up in the morning might be a great shorting opportunity so maybe no options or just some calls) but I remembered that huge move in USPI last week and wouldn't give up ODSY!) Biggest one in SNPS and NOVL and medium in ZRAN.. second tier in ODSY, and CHK (smaller ones). Unfortunately we didn't realize how HUGE ODSY was going to be. Big intraday moves in SNPS and NOVL as well, virtually no longs or shorts in ZRAN, ODSY or CHK just the options. No other earnings plays had "anticipatory upswing" for the remainder of the week, but were short triggers although covered into the close (i.e. EASI, MRVL, SMTC, ADSK)

CHK last quarter: The gap up and crap is a very STRONG and profitable strategy for us.





Updated Thursday for Friday:

both the puts and calls as USPI usually does well.. February 37.50 puts and February 37.50 calls (just a pop)( course the March 38.50 would have been better as we had to take profits on Friday although the puts did not expire totally worthless after the gap fill on Friday.