Quote:
Originally Posted by Jupiter0
Thursday is a big day and Friday financials. MLKN has been a mess and does have history of earnings reactions. But not very large percentage moves. Might do some puts
There is almost no open interest, so you would most likely get a really shitty fill to open and most likely get an equally shitty fill to close. I only looked at a couple of strikes, but it looks like you would require a hefty percent change in the share price just to break even. Plus implied volatility of options almost always drops drastically after the report comes out. This is one where you can be correct on their earnings results and still lose.
I'd buy puts if you are expecting them to report zero revenues for the quarter and an announcement on the conference call that they are going to put a few hundred million dollars into a puppy drowning factory.