Stock Yid

Earnings Will Sink Blue Nile's Stock

That is correct. I bought the Nov $45 Puts. I rarely trade the stock itself. I prefer the options. It limits my risk.

I usually dont pay too much attention to institutional ownership or insider ownership.

The stock may not drop to fair value this month but the only time there is a chance of a stock correcting to fair value is when they announce earnings. Look at DRIV & STEC as nice examples.

Earnings Will Sink Blue Nile's Stock

You can do a search for stocks with extremely high PEG ratios, the problem is the data from Finviz.com gives you year over year. I was using a spreadsheet that gave me yearly qtr over qtr. Basically compared 3rd qtr 2008 with 3rd qtr 2009.

Earnings Will Sink Blue Nile's Stock

Now that everyone is up 10% on this call, I picked up the puts I wanted for their announcement on Thursday.

I bought the $45 Nov Calls. I would have liked to get them for $0.05 but there is no market for them so I had to almost hit the ask. I paid $0.30 which is dirt cheap if it hits my target of $17.50 - $25.00.

I wish myself luck :-)

Earnings Will Sink Blue Nile's Stock

Wow, I never received so much feedback on an article!

I ended up buying some of the Nov $45 Puts on it. This way I know what my max loss on it is and maybe, just maybe, this will be the quarter when the fund managers decide the charade must end.

Best of luck everyone!

Earnings Will Sink Blue Nile's Stock

I just spoke with my broker and he said they will not be lisiting new options on NILE because it is going to be delisted due to its low share count. Not sure what this all means...

Earnings will sink Blue Nile

I just spoke with my broker and he said they will not be lisiting new options on NILE because it is going to be delisted due to its low share count. Not sure what this all means....

Starting Short Positions in Eaton, Wynn Resorts and Capital One Financial

I love these people that take half your advice and dont know anything about risk management.

For the morons that dont understand risk management, here is how it works.

If you short WYNN with only 2% of your portfolio and say you have a $1 million dollar portfolio, that would be a $20,000 position. Now that you lost 10% on your $20,000 you are out $2,000 which is 0.2% of your portfolio.

And Mark, I like the trade you took even before earnings, It is only a matter of time before the stock trades on fundamentals again.

Palomar Medical Technologies: Where Will Share Prices Go Next?

I am out at $18.

The stock was officialy up today but it couldnt make a new 52 week high.

This move is going to be much slower than I hoped for.

I think it is a long term buy but I dont have the luxury of time!

Thursday Outlook: Commodities, Global Markets

Hi Dave,

I hope your wife has a successful surgery and fast recovery.

Can High Options Volume Predict Future Stock Prices?

I trade options all the time.

I look at the unusual option activity reports from Schaeffers Research everyday.

I have found, alot of times the unusual option activity or open interest is a hedged trade. Either a covered call, a vertical spread etc. Whenever I see a number over 10,000, I will pull up an intraday chart of both the stock and the option and then show the bid and the ask to see if the option was bought or sold and what there a corresponding stock trade to go with it.

The one thing i have noticed that works very often is the anticipated price move before an earnings announcement. That can be seen from the price of the ATM straddle.

For example XYZ stock is trading at $30 pre announcement. The $30 call = $1.50 and the $30 put = $1.50, the stock will move $4 after hours, by the time opening bell rings at 9:30, the stock has only moved $3 and it will not continue its pop or drop until enough options have traded for the straddle selling market makers to cover their position.

NutriSystem's 4Q Should Vindicate Past Quarters

It seems like it is a taking a long time for this 35 year old fad to die. Being that you predict the company goes bankrupt you should short this beautiful 9% up day. At least you are in the majority in thinking the stock will go down, its 60% short interest supports your thinking. The key in making money in the market is seeing what others don't see. Short overvalued stocks and buy undervalued!