Synchronoss Tech. (SNCR): What a wild ride!

In a recent post I examined the faulty base pattern of SNCR and explained why, at the time, it was not forming a cup with handle. My main problem was that the base pattern was not long enough and needed to be at least 7 weeks long. Since then, SNCR has continued its basing pattern and eventually broke out of a 7 week base on huge volume. I love the fundamental story of SNCR so I waited for a pullback and picked up some shares. After a modest up day following my purchase SNCR came tumbling down on massive volume.

I'm not sure what the catalyst was, maybe it was an insider stock sale, but I was not about to get shaken out of my newly purchased growth stock. Instead, I purchased some Oct 40 calls for 3.40. With an implied volitility of 80%, I was reasonably sure that we would be back up a couple points in the near future.

Well it took only one day as SNCR has rocketed back up 7% as quickly as it came down and I was able to sell my calls for 4.40. Not bad for a single day. I'm sure I could have hung on for more but I put in my sell order and didn't want to be greedy.