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Ninja7

03/11/11 5:38 PM

#106 RE: lerogee #104

Sure, but my question was concerning your earnings strangle technique. Certainly, you're trying to pick a stock that you expect to move significantly following earnings, but you've bought the options the day before. There is always a possibility that the stock won't actually move on earnings (e.g. maybe earnings end up being a wash). My question was about exit strategy in this case.

However, maybe a better question would be: besides looking at short interest of the playable float, are there any other criteria you examine in trying to pick a mover in advance of earnings (e.g. market cap, price range, volatility, etc.)? You pointed out ANN was the strangle play for yesterday (which it was), but why play ANN yesterday instead of ATPG or HIBB which also had high short interest?

Thanks. I appreciate you sharing your thoughts on this.