Monday, March 05, 2007

NEW short pays out huge

New Century Financial imploded today, down over sixty percent! My puts struck @ 10 are now solidly in the money. This company has looked doomed for quite some time. Their balance sheet is a disaster, and they came out last week saying they would delay their annual report. And today, the criminal charges and investigations were announced, effectively destroying the stock.

I've exited this trade with a handsome 500% gain.

As such, it is officially the best trade that I've ever put on. My previous record was back in 2001 when I put a big long bet on MSTR (MicroStrategy) and it doubled. (Thanks to Sam Choi for that one.)

I think you could short NEW all the way to $0, but for now, I'm out.

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