Earning is here again, not sure whether to hold the stock, big gamble actually, it can drop >5% or up >5%, even before result out, though stock is going up, on the day of release, it can crash down. Dilemma... 
Earning comng, sell or hold
- Thread starter innovest_11
- Start date
Quote from innovest_11:
Earning is here again, not sure whether to hold the stock, big gamble actually, it can drop >5% or up >5%, even before result out, though stock is going up, on the day of release, it can crash down. Dilemma...
What's the quandary? If you sell, it'll pop. If you hold, it'll tank.
Sell half then flip or fade the remainder.
Seriously...holding through earnings is really a gamble if in doubt, get out.
Especially right now, the market is due to vent some to avoid critical mass before continuing its trek.
Just go long index futures to hedge your long exposure!
Since the indexes (ES, NQ, YM) are unlikely to ever have a down day again you will be fully hedged in case one of your holdings reports bad earnings!
Since the indexes (ES, NQ, YM) are unlikely to ever have a down day again you will be fully hedged in case one of your holdings reports bad earnings!
Holding through earnings is a gamble. I base my decision whether to hold on the following.
Where is the price now compared to it's 52 week high, and 52 week low? If the stock is closer to its low then I take the gamble. Siri is a perfect example of this. I own it, and I am holding through earnings.
If the stock is closer to its 52 week high but I think it is a good stock I will sell my entire postion and buy calls at the next highest strike price totalling the amount I would have been willing to risk with the original stock purchase. When I do this I make sure I don't buy the calls until the last possible moment. Normally the last session before earnings is a losing day for the stock as people exit. This is when I look for my calls.
Where is the price now compared to it's 52 week high, and 52 week low? If the stock is closer to its low then I take the gamble. Siri is a perfect example of this. I own it, and I am holding through earnings.
If the stock is closer to its 52 week high but I think it is a good stock I will sell my entire postion and buy calls at the next highest strike price totalling the amount I would have been willing to risk with the original stock purchase. When I do this I make sure I don't buy the calls until the last possible moment. Normally the last session before earnings is a losing day for the stock as people exit. This is when I look for my calls.
In general, stocks are in fair to over-valued territory right now.
Six months ago, stocks were undervalued and there was little downside.
If the company in question does not make good during the conference call then you could have a bad situation.
Everyone is expecting nothing less then a slam it out of the park type conference call. If they get less, then Im afraid your in for some trouble.
Look at SAP. Just a warning (not even a conference call) and the stock gets slammed back to the 50 week moving average.
Someone has some bad news for us out there and whoever does will get swiftly punished.
Six months ago, stocks were undervalued and there was little downside.
If the company in question does not make good during the conference call then you could have a bad situation.
Everyone is expecting nothing less then a slam it out of the park type conference call. If they get less, then Im afraid your in for some trouble.
Look at SAP. Just a warning (not even a conference call) and the stock gets slammed back to the 50 week moving average.
Someone has some bad news for us out there and whoever does will get swiftly punished.
Quote from innovest_11:
Earning is here again, not sure whether to hold the stock, big gamble actually, it can drop >5% or up >5%, even before result out, though stock is going up, on the day of release, it can crash down. Dilemma...