Wednesday, October 22, 2014

Wednesday Oct 22 outlook

YHOO is up 5.2% at 42.25 after closing at 40.10 yesterday. The 42.50 level has been upper resistance on the stock recently. The stock is also getting slapped witha  bunch of buy targets on it. The IV going into the report was 76% pricing in a move of 5.5%

DDD is out with disappointing earnings stating that earnings and sales will miss expectations due to production delays. The stock is down 15% at 37 after closing at 43.30 yesterday

CREE is getting chopped 12% after posting earnings. It closed at 33.15 and is currently trading around 29.70 after hitting a low of 28.50. It had issued a warning on Oct 2 which chopped the stock down to 33 from 40 and kept me out of getting long a straddle into earnings. Straddle was only pricing an 8% move despite its average move 11%. The stock saw some put sales into the report, probably expecting that the bad news was already in the stock.

Yesterday Recap:
I got long a CMG 620/625 strangle when the stock was at 622.5 for 1650. Due to illiquidity, I was only able to escape with a 3% gain despite being up 10% at one point. The stock made its average low move of 2.5% instead of its average move of 5.3% after posting earnings.

At 1040 there was an INTC for NVDA rumor which sent NVDA popping from 17.95 to 18.10 only to fad back to 17.90 by noontime. The stock popped just after 1:30 when INTC stated they wouldn't comment on the rumor. NVDA closed at the highs of the day at 18.30

At 1205pm OCN had news out that it erroneously sent out foreclosure letters to thousands of people. The stock was trading around 26 at noon then dropped to 25 by 1205, only to drop to 18.57 by 1245. A 22.5 put could have been picked up for $1.00 and sold for $2 10mins later, or $4 40 minutes later.

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