Options action suggests that at least 3 stocks could make significant moves on their earnings release.
According to Brian Stutland of Stutland Equities the implied moves on Texas Instruments, eBay and Amazon are all worth following.
Implied Moves On Earnings |
Of course it’s important to note that the moves could be in either direction. So how should you game it?
Stutland is looking at a collar trade in eBay. With the stock trading around $22.30 he suggests buying the downside Feb 20-put and selling the upside Feb 25 calls.
Here’s how Stutland’s trade works: Stock at $22.30
Profits Capped at $25
Profit Up To $25
Loses Below $22.30
Protected Below $20
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Trader disclosure: On Jan 15th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (AET), (BAC), (INTC), (VIP); Finerman's Firm Is Short (IYR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT), (NOK); Finerman's Firm And Finerman Own (WFC) Preferred; Pete Najarian Owns (CELG); Pete Najarian Owns (FCX), Is Short (FCX) Calls; Pete Najarian Owns (HUM) Call Spread; Pete Najarian Owns (MS); Pete Najarian Owns (PFE); Pete Najarian Owns (QCOM) Calls; Pete Najarian Owns (TEVA); Pete Najarian Owns (TXT) Call Spread; Pete Najarian Owns (XLF) Calls
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