Thursday, January 18, 2007

three and out

Three earnings disappointments. AAPL came out with absolute blowout numbers, but the stock goes down because the guidance for Q2 was below expectations. MER is up a bit, but not enough to recover the volatility compression in the options. Same deal with CAL.

Back to the drawing board. It may not make sense to trade long options during expiration week going forward.

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