Don't Get Greedy With May Options
Earnings reports from Cisco Systems (CSCO) and Priceline.com (PCLN) both disappointed, but the market has been able to shrug it off in the early going. Closing out at least half of the CSCO ratio put spreads here at $0.70 would lock in a nice profit on this trade -- even taking into account the call butterfly purchase. Plus, it would take a lot of risk off the table.
Unfortunately, the gains in CSCO haven't been enough to offset the early losses in PCLN. There is still time left for the PCLN earnings trade to work and I've been targeting $680 since before the report. However, I did toss out a few more aggressive plays and PCLN has not had the movement needed for those to show any increase in value. In fact, both the bearish and bullish sides of the trade are lower....451 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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