Monday, October 19, 2009

Tech on Deck

Though the likes of RIMM, GOOG, INTC, and IBM have already reported earnings, we still have a bevy of tech earnings on the horizon. As far as the reactions so far, I think it's fair to say we've seen a mixed bag with the negative reactions coming in a bit more severe than the positive reactions. As of the day after earnings, here's the breakdown thus far:

RIMM = down 17%
GOOG = up 3.7%
INTC = up 1.6%
IBM = down 4.9%

With the muted reactions experienced in all but RIMM, short vol strategies had the upper hand. Though we haven't seen a huge run-up in volatility pre-earnings in most names, it seems to be justified thus far. Looking forward, we have quite a few heavy hitters coming out this week.

Monday- AAPL
Tuesday- YHOO
Wednesday- EBAY
Thursday- AMZN
Friday- MSFT

I plan on doing posts on a few of these highlighting volatility characteristics going into earnings.

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