Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

VANS +10% 2 sessions(volume/price explosion) the only play we even suggested holding through earnings. There is almost no chance we hold anything through the report, the knowledge of the potential of trading halting, 2 or 3 point dips is too risky. VANS tried to get a fill on the 12.50 calls yesterday but was not successful (3:00) but the stock was called HIGH RISK only for the risk tolerant by 13.12 a share. Moved to 14.70 and the tracking was from Monday actually. What is also noteworthy and another point of this post is the volume, when we called VANS a possibility volume was a mere 80,000, it moved up to 350,000 yesterday and after the report a huge 809,000. RHAT is the #1 where the money flow stock on nasdaq today with a huge volume increase of 837% and it was barely mentioned anywhere in the 1-2 days prior to the report. So price/volume increases also make it easier to play the gap in the morning and short or whatever, since the volume is amenable to anything you wish to do.

A straddle/strangle is still the very best way to play THROUGH report, and the more volatile the company the better.

#msg-2667336

Posted: Mar 23 2004, 02:57 PM
VANS volume price explosion in front of tomorrow's earnings -

VANS volume explosion double actual volume which is what happens when an earnings play revs up for the report. VANS moved 6.72% today and has April 12.50 options for only $0.60 but wasn't filled RISK TOLERANT MIGHT CONSIDER HOLDING SOME VANS LONG THROUGH THE REPORT.