Two Earnings Plays

We have yet to graduate from "Buy the Dip University," where there's a Fed-sponsored kegger every day at 11 a.m. and 3 p.m. But one day we'll have to return to the harshness of the real world, where you can lose what you worked your whole life to achieve in the blink of an eye. On the flip side, pushing shorts continually into this ramp has been like beating yourself over the head with a hammer. The only good thing is if you hit yourself long enough, it eventually stops hurting.

My earnings focus is on Priceline (PCLN) and Universal Display (PANL). I went over the PCLN chart earlier, so my approach is to play around the $740 area and look for a move to my price targets or slightly beyond. I am taking a May 10 $740-$780-$795 call and May 10 $740-$700-$685 put skip strike butterfly or butterflies. So I am playing both directions looking for the move around $24. Also, I added very small May 17-10 calendar spreads, which are long the May 17 $780 call and $700 puts while being short the same strikes with the May 10 expiration. This is right around $3.60 and still requires a decent move in PCLN to see a profit. An unchanged stock or $10 move won't help the calendar spread....205 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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