Steve Patterson

Steve Patterson
Contributor since: 2008
Company: FastSwings - Something I like to read.
Netflix has had four quarters of beating their earnings expectations.
I was surprised that Goldman Sachs didn't move higher today on the outstanding earnings but I feel it is a sell the news reaction. Analysts should boost expected earnings in the coming days which will cause it to jump.
The June Options expire prior to the earnings.
The July options for yesterday trading appear to be strong on the Call side with heavy volume in 150 and 155 strike prices. With additional Call volume all the way up to 170.
The 130 Puts also saw 9900 contracts traded in addition to some high volume right around the current price with the 145 strikes.
The analyst downgrades are new. This isn't a stock that has hit a new low on no news and is starting to rebound. GM might stabilize in the short term as I wrote in the article but over the next several months I see continued downward pressure.
Big news today is going to cause these stocks to rally more, "Saskatchewan potash producers more than doubled the price of fertilizer exports to China." There might be pullbacks but these stocks should mostly all do very well this year.
The Nasdaq and the S&P both hit new fresh lows on Monday and have not formed a bottom. The Dow is starting to look like a bottom with Monday being the correction that did not make a new low but we need another day or two to see if the upside leg will extend.
Within the article I initially mention my percentages of being in money and being in short positions. The single inverse index funds support those mentioned percentages.
I almost referenced the CNBC story in the article. The CNBC article has seen been corrected sincle I wrote the my article.
When you strangle a stock like AAPL prior to the earnings, how far away do you purchase the options? 10% in both directions, 20%, etc. ?