Hi,
I am new to the forum (and to trading) and have this question:
IDCC (Interdigital Communications) has some great numbers (per my analysis with Investools - or "IT") and is one of the top performing stocks (according to technical analysis) in the top performing industry (Technology/Communications Equipment or .TCE) -- per IT.
It's been on a short uptrend since the middle of July and currently sells for $35.76 (US).
Now, tomorrow is Q3 release and it seems it has had some nice rallies on Q release date (this year).
It's shown 2 big jumps on the first two Earnings releases (from $18 to $24 at the end of January 06 and from $22 to $29 at the end of April), but it has shown a steep downturn on Q2 announcement at the beginning of July (from $36 to $25). Then it slowly went back up again (over 4 months) to $36.
Over the last 4 years it's seen the following changes (on Q3 announcement):
in 2005 there was a minor change (bet. $17 and $20).
in 2004 it jumped from $16 to $22
in 2003 it moved from $16 to $20 (declining sharply from $25 to $25 on Q2 Earnings)
in 2002 it jumped from $8 to $20 (again on Q3 announcement).
With these trends, do you think it will jump high tomorrow or it will sink down?
What would be the or a strategy to use to take advantage of either move? Will that be a spread?
A Nov. $35 call is going for $2.15 while a Nov. $35 put is selling at $1.30.
Will buying both be a good play?
I'll need to move about 3.5 points in either direction to make it a profitable trade, correct?
By the way, do you know of any new services that discusses predictions on upcoming Earnings release announcements? (I check bloomberg, prnewswire, wsj, ml, and investors daily but have not seen them discuss predictions -- I've seen the after the fact press releases only.)
In any case, thanks for your input.
Best,
GSB
I am new to the forum (and to trading) and have this question:
IDCC (Interdigital Communications) has some great numbers (per my analysis with Investools - or "IT") and is one of the top performing stocks (according to technical analysis) in the top performing industry (Technology/Communications Equipment or .TCE) -- per IT.
It's been on a short uptrend since the middle of July and currently sells for $35.76 (US).
Now, tomorrow is Q3 release and it seems it has had some nice rallies on Q release date (this year).
It's shown 2 big jumps on the first two Earnings releases (from $18 to $24 at the end of January 06 and from $22 to $29 at the end of April), but it has shown a steep downturn on Q2 announcement at the beginning of July (from $36 to $25). Then it slowly went back up again (over 4 months) to $36.
Over the last 4 years it's seen the following changes (on Q3 announcement):
in 2005 there was a minor change (bet. $17 and $20).
in 2004 it jumped from $16 to $22
in 2003 it moved from $16 to $20 (declining sharply from $25 to $25 on Q2 Earnings)
in 2002 it jumped from $8 to $20 (again on Q3 announcement).
With these trends, do you think it will jump high tomorrow or it will sink down?
What would be the or a strategy to use to take advantage of either move? Will that be a spread?
A Nov. $35 call is going for $2.15 while a Nov. $35 put is selling at $1.30.
Will buying both be a good play?
I'll need to move about 3.5 points in either direction to make it a profitable trade, correct?
By the way, do you know of any new services that discusses predictions on upcoming Earnings release announcements? (I check bloomberg, prnewswire, wsj, ml, and investors daily but have not seen them discuss predictions -- I've seen the after the fact press releases only.)
In any case, thanks for your input.
Best,
GSB