Go to Jeff Salisbury LWGate Home Page.From: "Pritish Shah" <pshah@lason.com>
Subject: Re: [CANSLIM] Another mystery plunge
Date: Fri, 25 Jul 2003 12:16:11 -0400
Previous Article (by Date): Re: [CANSLIM] Another mystery plunge Hong Hsu
Top of Thread: [CANSLIM] Another mystery plunge Hong Hsu
Articles sorted by: [Date]
[Author]
[Subject]
Does it make sense to buy put options before the earnings come out? My = thinking is that if the stock is going to do good, then the money for the = closest option (whether in the money or out of money) would be well worth = it. Eg. I own ANSI. Today it is 39.60 with the put for $40 (in the money) = going at $1.80. I bought the stock for 28.67. If the stock takes a = nosedive due to earnings, then I am assured 39.60-1.80 or $37.90. If the = stock stays the same, then I do not have to worry (I can sell the put and = get back around $1.80). If the stock rises, then also I sell the put for = whatever I get and join the ride up for the stock. The above process would assure me atleast 30% profit or more if the stock = goes up. Pritish >>> dmc197807@comcast.net 7/25/2003 11:55:59 AM >>> Hong, <<Why price drop? The fundies and TA are all great.>> I won't address the fundamentals, but I question whether the TA was all = that great. On OSTE (TBL has similar characteristics, but I won't go into them here, in view of time) you have a stock which pretty much tripled ($6 to $16) in 4 months on a volume drive. It broke its upward trend back in = June, then broke back down through the next uptrend this month. It was making fairly short, squat candlestick forms in the last run up to $16.30 as = volume was tailing off. Moreover if you look at price by volume bars you can see = a huge buildup in the $14-15.50 area. This indicates possible support at = this level, but also a lot of shares changing hands. Profit taking. Also, RSI was clearly tiring last month and forming a big negative divergence with = the price action; bearish. Finally, the overall market is incredibly topsy here, the VIX spiked below 20 yesterday and there are very few buyers out there left to buy, but = plenty of nervous sellers. The overall condition of the market is, in a word, bearish, and a retreating tide will strand all boats. The very first question any investor/speculator needs to ask is "how is the condition of the market?" In this market, no matter what the individual charts, the upside is = limited and the downside something like last May-July or worse, so the condition = is bad. It is not, imho, a time to be buying equities, buying calls or = selling puts. It is a time to be establishing shorts, selling calls and buying puts, or investing in counter-market positions like bear funds and gold equities/calls. DMC - ----- Original Message ----- From: "Hong Hsu" <honghsu@bellatlantic.net> To: <canslim@lists.xmission.com> Sent: Friday, July 25, 2003 8:29 AM Subject: [CANSLIM] Another mystery plunge > On 7/18 Duane reported TBL plunged $8 on no-bad-news earning > release. Today OSTE plunged 23% on 50% surprise of earning release. > The estimates is $0.10 vs. $0.02 year ago. The actual earning is > $0.15/share. > > Why price drop? The fundies and TA are all great. Your experience > comments will be appreciated, > -Hong > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): Re: [CANSLIM] Another mystery plunge Hong Hsu
Top of Thread: [CANSLIM] Another mystery plunge Hong Hsu
Articles sorted by: [Date]
[Author]
[Subject]