I've had some anxiety about holding FMD into earnings. My anxiety is only increased because I've not been sleeping well due to a right shoulder injury. It's one of those pulled muscles that keeps getting injured. Anyway, it hurts like hell at night, so I don't sleep well. (There's a point here, eventually).
After checking on a few things this a.m. in the market, I elected to go through my freezer(s) and take inventory and prisoners if need be. I have two side by side refrigerators--one in my kitchen and one in the garage. The one in the garage seems to have more beer in it than food. I ditched my old chest freezer since it is a pain. I pulled everything out and washed everything down. It's gleaming. I also found some deer meat.
I'm not a hunter, though my son and some friends are. If you are going to kill something, you need to eat it. So unwrapped this right front shoulder, defrosted it, cut all of the meat off for stew and then chopped the leg joint giving one to Macy and one to Greta. I felt like Hannibal Lechter. I'm fixing stew with the meat. I marinated it in vinegar/water and garlic. The vinegar pulls the blood out. I'm going to honor this deer's death by having it nourish our family.
My point...well after lack of sleep and all of this activity, I had a nap. Now I don't nap during the day very often, but I did find that after my nap, my FMD had made a nice recovery. And the nap, and no doubt some sublimation of worry, gave clarity to my decision making: (1) I sold all of my 1500 shares of FMD for a reasonable gain; and (2) I bought 10 Sep 40 calls. My gain more than paid for the calls.
See my conundrum was whether or not expectations were so low that anything would seem fine; and the stock would go up. (I could only pray for an Amazon, and I never pray about stock outcomes!). But I felt there was equal chance for a 10% loss. I felt that buying the calls with the gain at worst would be break even. It's currently at $34.55 in the after market on Mom/Pop orders, for there is no real volume to speak of. That would have been an 8% loss, if it were to stick. So, I think that I made the right decision.
AMZN had the most amazing day. Seamus on BC's site noted that Market Peculator had a 'short after noontime' suggestion. Well, that would have been a wee bit nasty for someone, as it looked like someone put acetylcholine on the fire!
Now MarkM poses some points in the comments about fixed income v. real stock market gains. If you do not already go the GMO site, though you must register, but please do so, for it is worth it. I promise--and read Jeremy Grantham's letters as well as their outlook.
I'm not quite prepared to write about it. I'm also reading a Fed working paper. I'll distill that along with JG's letter and write up a few amateur observations.