SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The ultimate play:STRADDLES on earnings announcements.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ravi Durairaj who wrote (27)7/9/1996 6:18:00 PM
From: farouk a. hassieb   of 140
 
Ravi on ASND,

After reporting much better than expected earnings, ASND is trading in
the 59 range on Instinet trading. The outlook looks very favorable for the company with a good trend in operating margins and growing market share overseas. I would expect the stock to gap up in the morning. At the open, I will put in a market order to sell the put leg of my straddle. Hopefully it will be worth something. As for the calls, I think the stock will again trade in the 60's by the week's end. The overall market looks extremely weak and stocks are struggling to hold any significant gains. A good example is CSCC yesterday. My total cost for this straddle was about 5.75. I would expect to get about $1 when selling the puts in the morning which would mean my cost on the remaining call position would be about 4.75. If ASND trades in the low 60's by Friday, the QQAGK calls should be trading at about 8-8.50. Considering the market conditions and recent tech bashing, I will look to cash out the position if sitting on a gain of 2.5 points or more.
Did you buy a straddle on ASND?

On PRST, the stock is trading in a range between 63-70, but I feel it is overvalued at 60. Expensive option premiums for this stock is too risky(even for me!). On IOMG, I have posted before that I have established the call portion of my straddle in the 26-26.5 range last week. I think IOMG will run up to the low 30's before earnings and sit there. At this time I will look to pick up the puts at the nearest
strike, which will probably be 30, to complete the straddle.

Regards
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News