Watching Three Earnings Reports
May 04, 2013 | 03:00 AM EDT
Rovi (ROVI) has benefited from several business announcements and deals, the latest coming with Facebook. It's hard not to like this chart, but I don't, and the reason is that I believe a lot of this anticipated business has now been priced into shares. This stock is all about what will or could be, so I don't believe it has any room for hesitation or misstep here. I'm looking for $20-$21 on the downside. The option volume is thin, but it has mostly been on the call side. I had a May $22.5-$20 put spread filled for $0.65. ROVI data by YCharts
Lastly, I am looking at Concur Technology (CNQR), which is extremely intriguing to me around earnings. Even though this company has exceeded estimates over the last three reports (actually I saw seven in a row), shares have sold off. In fact, the stock dropped 8% to 10% from the prior day's close at some point during the next trading day. So I want to look to play something like a May or June $70 put here into earnings. This is a trade I want to be quick with if it shows a profit. Concur has generally filled the earnings drop quickly, sometimes in a week, though other times it takes a few weeks. So this is one where buying the weakness has been very rewarding. My target will be to get shares down some 8% to 10% from today's close. Of course, all this requires shares moving lower rather than higher. We'll see what the report brings. CNQR data by YCharts
At the time of publication, Collins was long FB call and put combos and had a put spread on ROVI.
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