ADI 51 nice play going here. Straddle Feb 50 a bargain at $0.90 the 50 puts today $1.25 to a sell at $1.95 so we did pick up puts but call a sell on the gain and/or a COVER ON THE SHORT. ADI 50 calls were picked up at $0.80 sold at $1.50 or $1.35 and the stock was long for days and short today. We don't look for EXTREME plays like IMCL.. we leave those for the gamblers. We did have IMCL as a short for a while then covered and just left it alone.
strategy for NVDA and ADI (stalked all week]
INTO THE REPORT.. I would be holding of course the much cheaper now ADI CALL OPTIONS 50 for FEBRUARY which were closed almost completely. (They are cheaper by about half! ADIBJ for $0.90 no big positions, we are still very leery of this stock.
If you picked up some February 50 puts already lock in some profits (about 50%) but I would hold 50% of ADINJ as well so we would be going into earnings with a shaved position (about 50% to 25% of our original call/put position) about 10 of each is okay.
NVDA Pretty much the same February 25 calls NVDA are dirt cheap now at $0.60 after the pullback (UVABE) while the February 22.50 or 25 puts are soaring. (The 22.50's are better so I would hold UVANX which is now trading at $0.90 with UVABE, adjusting profits accrued in any intraday option trading if you made any.
NVDA might accelerate to an earnings run above 23.50 but this is for aggressive traders as it might easily get knocked back again. I would wait as late as possible into the 2:00 or 2:30 area where traders are probably going to cover their shorts for sure.
ADI above 49.40 but here again you are looking at SHORT COVERING and you don't know how much upside you will get, these traders are savvy enough to SHORT THE RALLY when you least expect it again.
From the room log:
Thu Feb 12 15:06:33 2004: marketge [0/] Msg:I did NOT manage to get the upside in ADI.. but I didn't really expect it.. however I WOULD BE and am covered all shorts in NVDA and ADI ands have been since 1:00 p.m
Thu Feb 12 15:07:02 2004: marketge [0/] Msg:I would hold a medium to small straddle in ADI and NVDA through the report.. no 40 contracts please folks
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