Roadrunner

As a kid (ok, even today) I enjoy the battle that ensues in the Roadrunner cartoon. ACME always seems to be more than adequate to stop Roadrunner, but falls short over and over. Clearly it is user error at times, LOL.

Today however, ACME (Acme Packet Inc) stock is not falling short. The stock has experienced an almost 20% up move today off of their earnings report on 2/1/2011. I have been executing on my plan to deal with my long position, which included selling partials in to the strength. I hope any of you that are long are doing the same.

Once I was down to a 1/2 positon left, I was at a crossroads. This is a Long Term account holding, so I have a certain strategy with holdings in this account. A move of this magnitude seems outsized, so it seems prudent to protect the gains. I elected to put on a Feb 62.50/67.50 collar at a net debit of $.20. This trade protect me on the expected "fade" or pullback, but also caps the gains on the remaining shares at 67.50.

As of noon CST, the stock is continuing to advance and is nearing 67 a share. Oh boy. I am at risk of the stock being called away at any time, but likely over 69 the call buyer gets interested. We shall see.

Beep Beep.