You can't win them all. Even as I am writing this analysis, I am eating a bowl full of missed opportunity. Well, not exactly. Coming into yesterday's earnings, I picked up 2 calls of AAPL in the morning and then 3 more later in the day as I saw some strength from a beaten down AAPL.
With the "news" or should I say rumors of it missing iPhone expectations and major supplies down, I really thought they had missed expectations coming, but still wanting to ride the wave, I picked up on the strength in AAPL's charts.
AAPL was bouncing off its 200 day moving average (green line) and still full of energy. I should have figured all it could to do was to go up. I picked up AAPL 2 days before earnings at the 160 strike price (.7 delta).
At 3:45PM I decided close out the position. I was already up 27% and didn't want to Jinx myself, so I took the money and ran. $1k in 2 days. Not bad. But then after-hours, I see AAPL beat expectations and is jumping another 3-4%. Oh well. You really can't win them all.
I hope you are having fun in this earnings period. The market is still very volatile, with lots of whipsaws, but the one constant has been good earnings. Even with the ups and downs, the market, for the most part, is still moved with positive news. For that I still have my edge.
Next up: TSLA (5/2) and BABA (5/4)
May God bless you richly.
