On Friday, I did something I never thought I’d do in my life, which is go long Seagate (STX) puts.
This is loony because the stock was almost $1,000 and the options were incredibly expensive. I gave it a whirl, though (red arrow) and was pleased to close Friday with a small profit on them. I was even happier yesterday, Monday, when STX took a tumble, so I sold the position (green arrow) and patted myself firmly on the back for being such a clever lad.
You already know what came next. The stock is in a free-fall today, and a nice four-figure profit has become a would-have-been five-figure profit.
STX reports after the close today, and knowing how the market gods are, I betcha this thing gets absolutely creamed tonight.
I have a small short position in STX that I entered yesterday, so I won’t be a total putz if it collapses, but ouch, this already hurts to see what my puts have done!
