What happened to HOV

S

StasDesy

Hi All,

I've bought a couple of calls when I received the Q2 earnings report on this stock. It kept sinking since then. I have two questions in this regard:

1) What the hell is going on with it ? I mean according to my (litle) understanding of the stcok market it should soar on higher then expected earnings.

2) What is the best way out of this: Sell my options and loose like 60% of the value or just sell another call for the higher strike ?
 
you've learned a good lesson here. Buy the rumor sell the news. Many times when companies have good earnings people hear rumors before and buy early. When the news hits the street they sell and take profits. This is a simplistic answer but you get the idea.
lesson #2 don't trade based on what YOU think should happen because HOV has good earnings, just look at what the stock does then go with the flow.

scalp
 
Thank you.
First decent answer I get on this forum.
I was actually tracking this thing and according to my understanding it was a sort of uptrend. Anyways, I only have ~300$ invested in it so no tears.

What would you do in this situation sell the position or sell a higher call ?
 
If you have to ask here, the best thing to do is just liquidate the position. When things are uncertain, best not to complicate them further IMO.
 
Quote from StasDesy:

Hi All,

I've bought a couple of calls when I received the Q2 earnings report on this stock. It kept sinking since then. I have two questions in this regard:

1) What the hell is going on with it ? I mean according to my (litle) understanding of the stock market it should soar on higher then expected earnings.

2) What is the best way out of this: Sell my options and loose like 60% of the value or just sell another call for the higher strike ?
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well if you liked it at 45 you got to love it at 35. i got a few questions for you to think hard about. how do the big players sell out at high levels all the time. also who is the last type of person to buy a stock before the decline? you should read Reminiscences of a Stock Operator its a great book. also remember a research report is a tip and people give tips so they have others to sell too.
 
what $300 and your talking about it. there is got to be rules on this site. i am not going to be mean but if you don't have at least 25k in the position don't post a question. its like asking people did i get screwed on this 63 cent pack of gum.
 
Quote from brokerboy:

what $300 and your talking about it. there is got to be rules on this site. i am not going to be mean but if you don't have at least 25k in the position don't post a question. its like asking people did i get screwed on this 63 cent pack of gum.
More...



Chill out brokerboy if you don't like the monetary value of the question then don't read on. He is asking a question about how to play a stock, it doesn't matter what the value is. Geeez
 
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