Wednesday, April 25, 2007

EXBD Tanks...

I've been watching this stock and trying to catch it short for a while now. I'm not surprised to see that it took a catalyst like missing earnings to finally get it to break to the downside. In my view it's crazy to hold a stock going into an earnings announcement, but playing something like this with options can make sense. I didn't do that, but given that I've posted short setups on this stock recently I thought it would be worthwhile to point out what happened and how it could have been traded.

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