A $3 slide in SOHU tonight. I went into the trade with the May25 calls and hedged with May with puts as well.... not the outcome that I expected, but it looks like the trade will be good to the downside. There were a bunch of big trades yesterday in the May30 SOHU calls, those folks are dead.
Unfortunately, DIVX royally missed the boat with both bottom and top line numbers and guidance, even after a pre announcement. DIVX is a total debacle down a whopping 14% tonight. Even if I make a little money on the SOHU puts, the profit will be offset by a loss in the DIVX calls. You win some, you lose some.