It depends on your investment horizon. For example, NTOP reports after the close. If it blows out the estimates, VoIP sector may get a pop. Or not. Alternatively you can do a buy/write trade, covering some or all of your position with 7.50 calls.
Another way to look at this is, that last several days, is this a normal EOY profit taking, or more than that? SONS is one of the first techs to report, and may be something not good about this quarter's earnings has been leaked out... Thus may be you're better of waiting until SONS consolidates somewhere. TA-wise it is oversold, but does not look like a buy.
Personally, If I were to establish a new position in SONS, I'd probably pick up a third of my projected share count for $7.20, and covered half of it with Jan 7.50 calls, just in case.
JMHO and FWIW.
Disclosure: already long SONS with cost basis of under 3. |
