Medifast gets hammered!

MED came out with lowered guidance today and the stock plummeted. Down 14%. Ouch!

I have earned quite a bit of option premium on this stock over the last two months, but this really puts me it the hole. I have sold a June $10 option and the stock is now $7. I put in a bid for the option today, but it was not filled. I would like to buy it back now and sell again if the price recovers.

This is a tough company to figure. Good growth and profits. Reasonable PE. But extreme volatility, especially on bad news. I need to take another look at this stock and company.


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