Following Up on OVTI
I've been focusing on OmniVision Technologies (OVTI) for a few days now, both before and after earnings. Originally I set up a January risk reversal long January call spreads and short January puts. Then for earnings, I added some ratio December put spreads along with December call spreads. The reaction after earnings was a little troublesome although it set up nicely for the ratio put spread. But the chart is starting to look very constructive for the bulls, so what to do here?
First, the January puts stand at half the price they were sold for, so buying at least half back here feels like the right move given the risks still associated with the market. The December ratio put trade can be held. The trade was done for a small net credit, so even if it expires worthless, it does not create a loss. In fact, it is a nice position to have....301 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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