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………
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….
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!