RadioShack has such a schizophrenic history with earnings, this is almost par for the course. Take your time and do your homework before allocating capital here. Look for the second break above $3.50 as the one that "sticks."

What's the best play with RadioShack? There should be a very attractive trade coming up Thursday and or Friday. Near the end of the day, if still trading lower, sell out of the money puts. Fear of continued losses tends to push portfolio insurance prices up dramatically, while at the same time the stock should bottom.

It's not one to get greedy with; hold on for a few days and as the implied volatility falls (hopefully with a nice dead-cat bounce) exit out with a quick hit and run for profits.

Otherwise, for longer-term investors the best play is to wait until we are closer to the next earnings release for an entry.

For now I am hanging on to the put options I wrote and will have the shares put to me next month. Admittedly I am not a RadioShack shopper; however, the shares are priced like never-ending options. If management can deliver, a three or four bagger is a real possibility.

At the time of publication, the author was long RSH.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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