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Scott Cooper wrote:
>
> I need some help. I own some cpq stock and also bought some oct 75
> options. After yesterday $+3.625 to 77.25 I felt pretty good when I
> heard this A.M. that they beat earning expected which is usually good
> for a point or two and thenit was going to split and increase its
> dividen. this sounded like my Oct. $ 75 option was going to be worth
> money. The stock is now down over 2 points What happen? What did I
> miss? scooper
What went wrong is that you forgot the old adage of "buy on rumor"
.."sell on fact" . This is true 90% of the time. Also, your options
were most likely over-valued when you purchased them, regardless of the
facts.
We all live and learn.
regards,
jdfo
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