Earnings trades

Quote from IV_Trader:

took reverse calendar on YHOO :

bought 40 Jan call (1.30)
sold 40 Feb put (2.00)
ratio 1:1

Very low (almost none) risk , but also limited possible gain .
Feb vols will collapse to mid-high 20th tomorrow
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should be : sold 40 FEB call , and not put
 
Quote from IV_Trader:

down 12% after close , if price stay < 35.5 , profit will be 50-65 cents on this trade .
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can you buy stock in here after-hours to lock in the profit, full or partial?
 
Quote from fader:

can you buy stock in here after-hours to lock in the profit, full or partial?
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not is this case ; if I buy and stock goes down ,its will be a loss
 
Good trade on YHOO. Unlikely they will rebound before the morning. Profits easy to lock in at that time, especially as IV collapses.:D

Same situation with IBM and INTC. Both down after earnings announcement. IBM killed street estimate, still down after the bell.
 
Mo*2 , thanks

Cashe , INTC and IBM were not a good candidates for this type of trade(price away from the strike , not inflated Feb vols and credit < 40 cents)
 
Busy day...possible reverse calendars for today : EBAY , QLGC , AVCT, HTCH.

Also looking to go long on ADTN (1/24) Feb 30 straddle.
 
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