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If a Stock Drops 10% In One Day Can You Play It For A Two day Rebound?

Here it is. Here are the 240 series of Calls that expire in two days. $565.00 U.S. is a lot of money to shell out as an experiment. Now this. The next days action. Half of this options life has now disappeared. Now a look at its five day chart which tells a different story. I don't like chart charts that look like they are languishing sideways. This one does. Analysis explained this drop away under the guise of "macro shift's" happening within the industry, not company specific reasons. With just one trading day left I would get out. Hanging in is to big a gamble. Wednesday's index loss was almost 500 points and today's action was an across the board market rebound. Get out and start tomorrow with a clear head. Read my previous blog on Pfizer options which also traded during the same time period.
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Roku Jumped in Anticipation Of A Good Earnings Report

Only to fall again. Look at this five and thirty day chart.
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Yet thats only part of the story. Look at it's year to date chart.
How bad was their earnings report?
Do you think their pain and suffering is all now behind them? The stock is down 38% on the year. All I know is that they still seem to be making a pile of money. On a different note and in a different industry a stock named "First Solar" was stuck in neutral a few months back because interest rates where to seemingly high and companies in that industry were cutting back on the size and number of projects they were working on. Since that time and for whatever reason the stock in on fire.
Both Boeing and Caterpillar also crashed last week on earning report releases. There seemed to be a hint of danger present in both companies releases. It's almost as if there was a domino effect. Next question? Why is Netflix gettng beat up? Look at it's chart.
Is it partly because other companies like Disney are beefing up their efforts to become a bigger player in this space. Yet then again, the more things change the more they remain the same. A few years back all eyes were focussed on Netflix tweeking their business model on advertising policies and on the issue of their subscribers sharing their passcodes. Those issues are now largely history. We must not forget that Roku has 80 million subcribers. There is still plenty of money for all to be earned. The lesson to be learned is that following sideways moving stocks doesn't always pay off. ** See how I struggled with Roku in a blog I posted on April 15th. It's all to easy to get fixated on sideways moving stocks. * Roku closed down $.55 cents on the week and as mentioned previously in my April 15th blog, Cathie Wood the founder of "Ark Investor" now has some skin in the game.

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