Today I bought some $57.50 October 16th CALLS of CSX (Ticker: CSX) at around noon for $1.20. Unfortunately, I did my analysis of the stock late yesterday evening, and did not get the time to post on the blog about it. Given the state of the economy, and what I deemed to be "softish" earnings expectations by analysts, I thought this stock would be a good earnings play. As of now, 7pm EST, CX is trading at $58.52 in the after hours after posting earnings of $1.08, beating the Street's estimates of $1.04.
I suspect tomorrow we will see decent earnings from JP Morgan (JPM) before the bell, and we will also be buoyed by earnings beats by Intel and CSX, as well as the Fed's QE2 guidance this afternoon. I am expecting to see a high volume day in CSX tomorrow, and potentially a move up and through $59 in the stock. So far my thesis on a pop from earnings is correct, we will see how my options play pans out in the days ahead.
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