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Economy

rdking647

(5,113 posts) Fri Jan 27, 2012, 11:06 AM Jan 2012

todays trade

i bought some upside calls on GMCR. im short teh stock and they have earnings coming out next week. the stock is trading $50 or so. I bought the 60 calls expiring next week for $1.05. if the stock posts good earnings it could easily soar 25%,when it had poor earnings last quarter it sank 40% this way im protected. if the have poor earnings like i suspect then the stock will plunge and all i did was lower my short price by 1.05.
i think its worth the hedge. Im also short amazno but im not hedging that

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