FWIW, I think it's better to short a stock with earnings, because they are tied to some sort of valuation model. What's the difference between a PE of 2000, 5000, 10000? Those EBAY puts defy the leverage that makes options trading profitable in the first place. Better to short a stock with a three dollar option and triple your money, than to buy a 40 dollar option and depend on a complete meltdown just for a double...Plus you have the problem of a relatively thin float, and the internut tout-athon going on this week, not to mention the split.
With EBAY, you are entering into serious flak jacket, steel helmut territory!
Heck, I'd rather short Cisco, Dell, Intel here than EBAY!
BWDIK? |
