Event: GMCR reports their fiscal Q4 after the close tonight. The options market is implying about a 20%* move following the report which is shy to the 4 qtr avg move of about 34%. *(I …
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Update, Oct 2nd, 2012, 12:35 PM EDT: In yesterday’s CotD post (copied below), I highlighted the rise of implied volatility in Herbalife heading into the Value Investing Congress, as traders focused on Einhorn potentially revealing …
Continue readingTo get a feel for the verbal power of a well-known hedge fund manager like David Einhorn, look at the 1 year chart of Herbalife stock: Over the course of 3 trading days …
Continue readingTrade Update Aug 10th, 2012 at 9:57pm: With the stock settling in for the moment below my strike, and the spreads on the options getting a bit tighter, I closed the Put Calendar at 1.85 …
Continue readingNew Trade Aug 8th, 2012 at 3pm: As many readers know, this is just not the sort of stock we would ever buy. At some point, in the not to distant future, their growth will …
Continue readingEvent: MNST is set to report their Q2 earnings after the close tonight. The options market is implying almost an 11% move following the report which is far greater than the 4 qtr avg move …
Continue readingHere’s a preview of what I’ll be discussing tonight on Options Action at 5:00 pm EDT on CNBC: Let me first say that the trade idea I’m proposing today is a very low conviction trade, …
Continue readingTrade Update July 11th, 2012 at 9:45 am: I am going to take off the Sept 18/16 put spread that I sold a month ago at $0.73 credit this morning for $0.55, for a 0.18 …
Continue readingLast week was a quiet week for us on the trading front, as we recognized the strong likelihood of a generally favorable outcome from the elections in Greece, we were (and continue to be) less confident that …
Continue readingBefore I say anything, look at the incredible chart of GMCR over the last 3 years: The stock is down more than 80% in the last 9 months, with the market actually up almost 20% …
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