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Old 10-07-2006, 04:32 PM
jacoh jacoh is offline
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Protective Puts

Hey,

Would appreciate help in learning how to use protective puts at earnings announcement time. I recently had a stock drop 7 points after earnings were announced even though, charts looked good. I am new here and would like help in using this strategy, how the charts should look, and what Depot parameters to use.

Jacoh

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Old 10-07-2006, 04:40 PM
earsha earsha is offline
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Re: Protective Puts

Does not matter how good the charts look. Earnings can make the chart topsy-turvy, so you should be aware of the consequences.

I played MRK and NFS earnings and got lucky. Played RAI and WFC split got lucky - not always!

If you can figure it out where the stock could drop after the earnings (does not matter how good the earnings, it could still drop) then you could buy OTM puts so that when the stock drops your OTM puts is in the money.

Other traders can help give more information, as I don't trade this way.

Earsha

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