Intra-day prices have seem to stabilized at around $59 CND. At this price, it seems that investors are concerned that this latest report of bad news is a signal that the potential earnings over the next year will suffer. While I would agree with that assessment to a degree, I'm afraid that the effect of price gravity in this environment draws prices down with much greater speed then is actually justified (and depress them more than expected).
At the current price, based on the earnings news, is fairly low. According to my previous trading spread $58 to $75, it would be about right to climb back in. However, with the revised earnings, I'd say the new spread should be more like $57.75 to $64.80. Although I still feel as if the stock is worth $70, the market seems to disagree (for now).
Optimizing After-Tax Returns on Options
1 year ago
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