It did recovered somewhat but not enough to break-even (I was stubborn enough not to cut-loss because I believe in its’ fundamental). The worst thing (look at the chart) is it didn’t able to break the resistance of $45 and slowly the time-value waterfall started to eat into my premium. 
Subsequently the next quarter earning announced on Feb-7-2007 provide much relieve when it reported quarterly earnings after preferred dividends of $35.3 million, or 67 cents per share with revenue rose to $925.3 million. Wall Street expected a quarterly profit of 59 cents per share on $923.9 million in revenue. More than that the company issued first-quarter upside guidance of 75 cents per share on sales of $950 million to $1 billion.
This time there’s no mistake – the stock price shot up after normal market hour and I took this last chance to close the position with a little profit.
# TIP: Always invest with abundance of time-value during your option trading unless you’re willing to lose all or cut-loss depending on the your investing strategy.
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February 9th, 2007 by financetwitter
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