While I DO NOT recommend the practice of holding positions across earnings reports, I believe in our current position holdiing a $25 APRIL put with the stock at $41.50 it would take a blockbuster disappointment to put our position in any type of jeopardy with 6 trading days left to expiration, thus we are recommending holding on on this particular occassion. If however, if some subcribers feel that a $16 point drop could be in the horizon, I have no trouble if they exit at this time and close their position and take a gain in the $0.40 area. However, we will be holding the short put position over the annoucement ( something that I rarely do, unless the stock is in a position that RMBS currently is in, being over $16 plus points away from our short strike. In additional RMBS is involved in court issue where RMBS patents are being infringed upon. A potentially positive result is also causing the stock to perform positively over the last several months.
So with that being said RMBS will be announcing earnings tomorrow. We will hold our position. But once again, if any subcribers have the desire or need to exit they could do so today and keep about $0.40 of the credit, but they will be leaving at least $0.25 on the table
Until next blog