NEW YORK ( TheStreet) -- If you're a current RadioShack ( RSH) investor, Wednesday's earnings release must have you wishing you could avoid your computer Thursday. I recently sold put options in RadioShack, so I share your frustration.RadioShack has lost about 29% of its market cap from Tuesday's close. The loss in share price is primarily from the surprising earnings miss and loss. I'd like to think the announced dividend cut didn't drive the price lower. A dividend cut was all but certain and as I sold the put options I knew the odds were high the dividend was on the endangered species list. Today's move didn't break through any support levels because there are none. The next area of support to watch is $0 (yes, zero). The widely watched 200-day moving average doesn't come into play until $7.70. RadioShack is oversold on the daily and the weekly charts, but without a support level it's make or break time. RadioShack CEO Jim Gooch stated:
We were disappointed in our gross margin rate performance, as the initiatives we have under way have not yet generated enough momentum to improve the trend.Insiders reportedly sold no shares in the last six months. Insiders were not buying either, but since they only hold a million shares, it's not clear management believes in the stock. ( TheStreet's Tim Melvin provides his opinion on four stocks including RadioShack in his article
...(L)et me move over to the performance for the quarter. As I said, the profitability was below our expectations. Gross margin was a significant issue, largely driven by the profitability in our Mobility business.