A couple points of clarification and a trade update.
A couple points of clarification and a trade update.
Yesterday I bought some GMCR calls because the stock had been crushed on fraud concerns (which will probably prove to be correct, if I had to guess), but on anticipation that their upcoming earnings report would be today and that it would be good enough to make some of the weaker-handed shorts panic and cover. I’m apparently not the only trader to have thought that today was GMCR’s report but it’s not…it’s November 9. The stock is up more than 5% since we bought the calls and the calls are up just a little bit more than that. I didn’t commit much capital to this trade anyway and here’s a good lesson — When you make a mistake about a date or any other data point/catalyst for a trade, you don’t justify keeping the position. You sell it and move on. I might revisit GMCR when it does get closer to its earnings report, but I’m not going to risk my money on the trade for now. Taking the small profits on these calls and moving on.
Second, someone asked which AKAM calls were up 150% today and I went back and looked and I was wrong when I’d figured my gains off the top of my head as I wrote that post. They were up closer to 125% in 24 hours, not the 150% I’d stated earlier. Tough crowd.
