>>In the month before earnings are released, insiders can't
>>sell--so there's no big selling at all and the stock
>>gets runup.
LRS,
Sorry, I just can't believe that the only major sellers
are insiders, and that, therefore, no collapse can happen
before next earnings in April. Going long on calls, for
a stock that i think is very close to near its top seems
like a real dumb, and very risky!, strategy. A true "synthetic
short" (a la what GSCO did with WDC last October/November
to great fanfare) requires buying BOTH puts and calls,
preferably, at least for the short side, of the LEAPS variety.
Last time I checked they didn't have LEAPS for AMZN.
A straight short sale is my preference. Options cost way too
much to trade when I add up the time premium, wider bid/ask,
and a higher trading commission. Not to mention the Schedule
D problem if I run a loss. Doesn't make sense for me, at all.
David |
