DELL DANCE Aug 19-21 anyone ?
Mohan,
looks like you are following this DELL release closely, and in general, a very knowledgeable poster indeed. So, please allow me to request you to shed some light on --- you guessed it -- "Dance of the Dell God" during the 3 days' pms period right after the earnings, i.e. Aug 19 -to- 21, this time around ? :-) Would you kindly share your insights?
The factors I see are as follows:
Aug expirations so close -- MMs will try to suppress the loot for the call holders (huge OI) -- so, no matter what the earnings, MMs will try to shake out the weak hearts by initially finding some excuse to allow it to move only sideways (or worst, down) for a short duration.
- Watching that, many short-term traders may pull the trigger (afternoon 19), and let go their guranteed profits
- Some aggressive nimble ones: may even assume reverse put positions in the interim
- Looking at the build-up of put OI, MMs may reverse the train and squash-out the players in the opposite direction also (afternoon 20)
- On Aug 21, it may jolt up-and-down all day, and finally MMs may bring it to rest to the price closest to the highest payout OI
Isn't it? Does all this make some sense? Please edit as suitable.
Then the question becomes: How to possibly profit from these short term gyrations? Any insights would be appreciated.
regards to all,
-/Sonny. |
