NEW YORK (TheStreet) -- If you're a current Red Hat (RHT) investor Wednesday's earnings release must have felt like getting caught in the rain without an umbrella while wearing your favorite Borsalino.Red Hat's stock gained about 10% from a year ago and remains in a bullish trend. Red Hat's CEO James Whitehurst announced passing of the billion-dollar mark in annual revenue.
...On a year-over-year basis, we had 16% billings growth in U.S. dollars and 20% in constant currency; revenue growth of 19% in U.S. dollars or 22% in constant currency; and more importantly, subscription revenue growth of 21% in U.S. dollars and 24% in constant currency. We also had non-GAAP operating income growth of 22% and operating cash flow growth of 38%. 55% of bookings came from the Americas, 25% from EMEA and 20% -- excuse me, and 20% from Asia Pacific. The top 30 deals set a Q1 record for deals over $1 million. In the quarter, we had 25 deals of $1 million or greater, nearly double from the prior year first quarter. Two deals were in excess of $5 million. And cross-selling was strong with more than 40% of the deals, including a middleware component and 3 being stand-alone middleware deals.What's the best play with Red Hat? There should be a very attractive trade coming up Thursday or and or Friday. Near the end of the day if still trading lower, sell out of the money puts. Fear of continued losses tends to push portfolio insurance prices up dramatically, while at the same time the stock should bottom. It's not one to get greedy with -- hold on for a few days and as the implied volatility falls (hopefully with a nice dead cat bounce) exit out with a quick hit and run for profits. Otherwise for longer term investors, the best play is to wait until we are closer to the next earnings release for an entry.