Price line dropped over $50 so far. Why did it drop so much? Institutions are selling PCLN
shares. Why do you ask? They are selling PCLN
shares because the company is due to report earnings
on 11/7/2013 . After Close When earnings
are announced this stock
can move over $50 - $100 in one day. My play on this will be a long strangle. I will buy an out of the money put and out of the money call. High premiums will be placed on all PCLN
options before earnings
reports are announced because the MM know that volatility
will increase and price will move with a lot momentum up or down.
I will buy my call and put options this week (10/21/2013) before high volatility
premiums are priced in before earnings
announcement to be safe.