Herbalife CEO Says U.S. 'Will Be Better When Bill Ackman Is Gone' [View article]
Even before CNBC's news yesterday (12/19/2012). There was heavy put activity. Look at both puts and stock volume on 12/17 and 12/19. The news about this short position was known by the smart money before CNBC made it public. So who traded? Journalists or people with access to privileged information. Example: 12/19/2012, strike 40.0 puts (before news came out). 600+ puts traded at $0.55.It appears that it was sold later in the afternoon in various chunks for $3.0 and $4.5.
Hi-Tech Pharmacal Set To Drop By 60% On Earnings And Fraud Investigations [View article]
Previous day put activity (11/28/2012) is about 400 puts traded ($0.4 to $0.5), strike $30, Dec 22, 2012 expiration. Not sure it this was for hedging or pure short play. Either way it appears that the thesis played out just as the article suggests in a day, even before the earnings.
Independent Lab Tests Indicate Teavana Deceiving Consumers About Pesticides In Tea [View article]
Well here we go: 19th Nov, 2012 Put activity: TEA Dec 15 puts (volume: 34.5K, open int: 4.6K, implied vol: ~20%, prev day implied vol: 12%). This clearly suggests the put activity before the release of the report in SA. No further comments.
Independent Lab Tests Indicate Teavana Deceiving Consumers About Pesticides In Tea [View article]
IMHO: If the test results were available before the acquisitions news, why not release it then? It is possible that the "big short" got squeezed and lost a huge chunk of money, then realized that it is probably too late. There were 30000+ puts traded yesterday (Tuesday) and puts (strike $15, Dec 12 expiry) changed from $0.15 to $0.8. It is unclear how many puts were traded on monday. What if the author was trying to position himself to recover the money lost in short stock? Either way, it appears, to me that there is some stock manipulation going on by people who lost.
4 Great Buying Opportunities After Friday's Losses [View article]
There is quite a bit of insider selling in VRSN and FFIV. This is not a good sign in a down market, suggesting more downside potential if the broader market weakens.
EDAC Offers Investors Huge Upside, A Potential Double [View article]
Hi My FactSet Quant screen is not picking it up as the market cap is low . As your thesis mentions it could be a hidden gem. Who are its competitors - tickers please..
Broadwind Energy: Anatomy of a Torpedo Stock [View article]
User 421012, Due to space limitations and other factors I did not give out all the reasoning, as to why BWEN was not a good long investment, even after company reported third quarter earnings. There were many red flags: Declining gross margins,Increasing Inventory / Fwd sales ratio, Stretched payables. Some of these are well documented in accounting research papers (1991 Victor Bernard - also in White, Sondhi and Fried).
Inventory decline is normally a good thing when sales are ramping up, but here it is not the case. Also, note that margin pressure and Inventory to Sales ratio after Q3 results. In Q4 (the MRQ) results, margins were very weak. So, if one relied on Q3 results alone, and positioned a correct trading strategy there was money to be made.
Many investors follow SEC documents, follow earnings call closely etc. and draw inferences. In this case my point was in addition an intelligent Quant screen (Factset based), one can do some analysis and still generate a positive alpha stock (in this case the strategy was to short the equity).
Herbalife CEO Says U.S. 'Will Be Better When Bill Ackman Is Gone' [View article]
Example: 12/19/2012, strike 40.0 puts (before news came out). 600+ puts traded at $0.55.It appears that it was sold later in the afternoon in various chunks for $3.0 and $4.5.
Hi-Tech Pharmacal Set To Drop By 60% On Earnings And Fraud Investigations [View article]
Hi-Tech Pharmacal Set To Drop By 60% On Earnings And Fraud Investigations [View article]
Hi-Tech Pharmacal Set To Drop By 60% On Earnings And Fraud Investigations [View article]
Independent Lab Tests Indicate Teavana Deceiving Consumers About Pesticides In Tea [View article]
TEA Dec 15 puts (volume: 34.5K, open int: 4.6K, implied vol: ~20%, prev day implied vol: 12%). This clearly suggests the put activity before the release of the report in SA. No further comments.
Independent Lab Tests Indicate Teavana Deceiving Consumers About Pesticides In Tea [View article]
Hedging For Disaster: 5 Plays That Make 500% If The Market Falls [View article]
Hedging For Disaster: 5 Plays That Make 500% If The Market Falls [View article]
"Keep in mind that these are 2nd stage hedges as we already have TZA hedges from higher levels (Russell 840-880, now 828). "
Can you provide a link for this please? (earlier hedge using TZA). Thanks
4 Great Buying Opportunities After Friday's Losses [View article]
Chasing High-Yield Dividend Payouts With A Hedge [View article]
Thanks for excellent valuable information with detailed option strategies.
EDAC Offers Investors Huge Upside, A Potential Double [View article]
My FactSet Quant screen is not picking it up as the market cap is low . As your thesis mentions it could be a hidden gem. Who are its competitors - tickers please..
Broadwind Energy: Anatomy of a Torpedo Stock [View article]
Due to space limitations and other factors I did not give out all the reasoning, as to why BWEN was not a good long investment, even after company reported third quarter earnings. There were many red flags: Declining gross margins,Increasing Inventory / Fwd sales ratio, Stretched payables. Some of these are well documented in accounting research papers (1991 Victor Bernard - also in White, Sondhi and Fried).
Inventory decline is normally a good thing when sales are ramping up, but here it is not the case. Also, note that margin pressure and Inventory to Sales ratio after Q3 results. In Q4 (the MRQ) results, margins were very weak. So, if one relied on Q3 results alone, and positioned a correct trading strategy there was money to be made.
Many investors follow SEC documents, follow earnings call closely etc. and draw inferences. In this case my point was in addition an intelligent Quant screen (Factset based), one can do some analysis and still generate a positive alpha stock (in this case the strategy was to short the equity).
PS: I am not a student (I graduated a while back)