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The Trade Coach

Alerts & Commentary

Alert – ATVID

07/31/2008, at 4:35 pm

ATVID

Earnings After-Hours…

Earnings beat their pre-announcement estimates and the initial guidance looks very good and well above current estimates, at least in respect to revenues.

We don’t anticipate making any AH hedge adjustments but will monitor the price action as the CC progresses.

Coach BD

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7/31 – A.M. Update…

The newly merged Activision-Blizzard will report earnings after the close today.  We feel our position is fairly well positioned with a significant upside and an adequate downside hedge.

However, if the company’s report is not as strong as they earlier indicated in their 7/14 pre-announcement, or they offer cautious guidance, we will be prepared to strengthen our downside hedge by selling an appropriate number of shares short in the After-Hours market.

Our intial evaluation if the stock heads lower AH’s is that ~50 Shares SHORT/LT Long Contract in the position would offer us the best downside protection with the minimum amount of upside reduction if we were later forced to cover the SHORT sale on a reversal to the upside.

Coach BD


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