Update - 9-28-06
This afternoon I sold my calls right before Accenture released their quarterly earnings. I sold them at $2.10 per option, thats a 366% gain!!!!! NICE! Accenture beat the expected earnings of .38 cents. For the quarter ended Aug. 31, earnings grew to $346.4 million, or 56 cents per share.
This morning I bought 2 Oct 30 call options. Accenture is reporting their earnings on Thursday. I am speculating that they will meet or beat their estimate earnings of .38 cents. If they do, the underlying stock (ACN) will go up. When that happens the call option will also go up. The Delta for the Oct 30 call is .45 cents. Which means for every dollar ACN goes up, the Oct 30 call will go up .45 cents.
Every 10 cent move on 1 option, equals a 10 dollar gain.
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