Herm,
Looks interesting. This is down to levels below those at which insiders bought this spring. The downgrades are based on speculation that it might lose one of its larger customers. But it successfully kept Nextel, its largest, and WWCA accounts for less than 10% of revenue. Apparently its margins are going to shrink due to unforeseen expenses associated with servicing its wireless customers.
Anyway, it does look like an overreaction today.
Edify/SONE keep going down, but the #%&@% puts refuse to budge! Just about every last bit of time premium is gone, though, so any further downward movement will get me out with a teeny profit. Thank goodness I timed the buy of the puts and the sale of the calls perfectly -- rare for me! Else you folks would have to put up with even more anguished whining from me ;~} May I assume that your philosophy on buying sideshow puts is similar to what David Wright posted? That is, buy ITM puts as sideshows based on technicals, and cheap, OTM puts to protect against an earnings shortfall or other big news situations? It makes sense to me. I didn't expect EDFY's earnings to matter much, and I was right. I was trading on technicals, but erred by buying OTM puts, it would seem.
Anyway, good luck with the ITDS viper. Will you be giving us a play-by-play on it? I'd like to see it.
Cheers, Tuck |
