Help requested on protecting a long term position from earnings report

Quote from trefoil:

Well, I figure if you're in a stock you should be able to tolerate 10% down on an earnings day, assuming a reasonably diversified portfolio, especially if you're in a tech stock. Even if it makes up 10% of your holdings (which is a lot, usually), 10% down would then only be a 1% hit to the portfolio. If you can make that your max loss on an earnings day, that's not bad, IMO.
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Everyone at the buffet table has their own limit on how much they can eat :)

For my own taste, I'd prefer not to own shares during EA but given a collar situation, I'd sooner overwrite calls further out of the money (or sell some add'l bearish call spreads on top of the CC) and buy a put closer to the money thereby limiting more of the potential loss more yet taking in a decent equity gain if a pop occurs. That's probably why I take antacids :D
 
Quote from noaveragingdown:

I've been a long term owner of CSCO and I don't wish to exit the position for quite some time. Unfortunately, last two reports have been brutal to me and perhaps three times is the charm but this time I want to be better safe than sorry as I've had enough of those wild swings.

NAD
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CSCO down almost 10% in after-hours. The traders who have stop loss orders get flushed out tomorrow at the open.

Hopefully you either bought puts or sold calls on your 4,000 shares. Looks like "three times" was not the charm, unless a trader was short before earnings.

Best of luck.
 
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