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Contrarian scores bigWe are possibly approaching a binary event. If there were a vote taken this past week on what the ASM and Gabriel presentation do for the stock price, I doubt there would be many who is not expecting a very positive response. I refer back to the CSCO jury verdict. The same board sentiment reigns supreme now except for possibly R.S.A. One lone voice, which I can't recall, alerted me to the possibility of an adverse vote. In the 20 minutes before the jury announcement was presented, I went on a flurry of put accumulations that totaled 3X my # of shares. The puts went for 20 cents. I closed them for as much as $7 before expiration the next day. The same option timing is in the cards for the ASM on 5/14 with trading through the next day only. IF the stock price were to be $7 on 5/14 there is not too much range like when VHC dropped from $35+ on 3/14/2013 to $21+ the next day which was also the last day of trading, the 3rd Friday. So, if in the possible unexpected event the market is not impressed on the Gabriel presentation and the stock were to tank, puts are the only way I know of to hedge if you are expecticing a big move up which would make the puts very cheap insurance if you are so inclined. So, in the mean time, it probably is far to early to buy puts as there is no volume and the ask is outlandish. Another possible fly in the ointment for the above hedge is an 8-K filing sometime before the ASM. So, you can see that the circumstances are a bit different than with CSCO where it was a fact that the jury was presenting their verdict after lunch during market trading hours. JMHO's. |
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