The Horrors of AH Trading

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On Tastytrade today, they were talking about earnings plays: two in particular caught my attention: Twitter (TWTR) and GoPro (GPRO). My opinion was that Twitter would go up a few dollars (see, I’m not always bearish!) and that GPRO, being a one-product, camera-on-a-stick silly company, would go down.

Well, watching Twitter, I was embarrassed at my guess for a few minutes, but………

0205-twtr

As for GoPro, I toyed with the idea of shorting it, but it’s such a new stock, I decided not to bother. I would have had a heart attack if I were short it, because it exploded higher to 62 (yes, some poor soul bought it after hours at this price). You can see what happened next….

0205-gpro

It’s beyond me why folks would participate in this after-hours earnings madness. And we can certainly imagine the emotions going through options holders who don’t have the luxury of trading after hours………think of the chap who had a ton of GPRO calls, was dancing on his desk with delight when the stock exploded higher………..only to see it crash soon thereafter!

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