MarketSwingPlayer

Why Priceline dropped so much? Looking for huge power play.

BATS:PCLN   PRICELINE GRP INC
472 9 0
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.
Correction I will buy my call and put a few days before earnings announcement. Did long strangle on google. 1.30 calls popped to $50 each unreal. Cheers.
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Normally above expected earnings. Price can go either way, but expect to move at least $50- $100
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PCLN Earnings Date Changed:
Release Date: 11/7/2013
After Close
Expected Time 2: 4:05 PM ET
Conference Call: 4:30 PM ET
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RGAH
3 years ago
I have a question, why do you buy just a few days before earning and not enough days before Implied Volatility goes up?
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MarketSwingPlayer PRO RGAH
3 years ago
Smart question!!!! I am just learning, no expert here. I was talking to some investors today and they mentioned that was another play. I am buying when Implied Volatility is low. I know it is low now. When do you suggest the best time to purchase so I can let everyone else know. Thanks
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RGAH MarketSwingPlayer
3 years ago
I am also learning but what I have seen so far 3 or 4 days before earnings Imp vol has already gone to the moon so you will be paying a lot more and will have to wait for a bigger move of the stock price, I don't have a specific number of days but I was told to buy at least 15 or 20 days before earning,
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MarketSwingPlayer PRO RGAH
3 years ago
Thanks so much, I wanted to ask that question and it just came to me. lol I will buy Monday and let other investors know. Nice to help each other learn. Cheers
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I was just informed by a nice Investor that the best time to by is during low volatility 2 weeks in advance, otherwise you will over pay. So I would buy my options now. So you get premium added to your options and pop.Thanks for the comments, we need to help each other. Cheers.
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RGAH MarketSwingPlayer
3 years ago
Excelent!!!
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