Thanks to some tedious research and some help from IBD, I am up over 600% in just over 1 month on STEC Inc (STEC). On June 5, 2009 I speculated with purchasing July 17.50 Strike Call options for STEC while the stock was below but close to 18 a share (I blogged about a covered call strategy on June 8, 2009 which I am also up 13+% on – see blog post here). I paid $145 per contract and as of today the bid is $9.60 a share or $960 per contract and the ask is $9.90 a share or $990 per contract. The stock is up slightly after hours so I am hoping it carries into trade Wednesday. I have decided to sell 75% of my contracts tomorrow, and hopefully can get STEC above $27.50 which will translate to more than $1000 per contract for these July 17.50 calls. If STEC does not break this bullish pattern, I will roll the remaining 25% of my calls for a higher strike (thinking the 25 or 30 per share strike) locking in some profits. I may also allow 10% of the contracts to expire in the money and keep the shares to write out for August. I will update my status on this position accordingly.
