Red Hat Inc (RHT) reported earnings after hours on Wednesday that handily beat estimates, and announced a $300 million buyback program. Seems analysts had the company all wrong, as the stock rallied 20% gaining over $10. Trades like these can make a traders day, especially when playing the options. Here is what we said on our watchlist, and then what we said in our chatroom in real time:
RHT – Like this company and had nice ER’s last night. APRIL calls are the play, 57.50/60s
| 2012-03-29 09:35:00 | Message | jimmybob | Option Millionaires Live | opentrade RHT APRIL 60 calls @ .20/.25 |
| 2012-03-29 09:36:22 | Message | jimmybob | Option Millionaires Live | RHT 55.68 |
| 2012-03-29 10:15:10 | Message | jimmybob | Option Millionaires Live | RHT ~ scary part is this keeps going higher on lower volume... folks holding for higher and this isnt a SHORTED stock ~~ could be clear sailing to 60 |