First off ~ I will take my hat off to the shorts at $20 or so, as that paid off where I did not think it would. You see, it looked like to me, one of those big moves where you hear the words later, "we told all to buy all the shares you could up to $19.50" or similar words. Maybe after that, they sat back to wait for the further rise, and knew if it did drop for some macro conditions they would buy more. You don't buy in after seeing the BB holding news thinking it will likely fall back much(who buys over 20% on a big gamble?). Someone must have a minimum rock bottom perceived 'buyout' value to feel safe to jump in and hold or else they would wait. Of course those big guns can afford to buy all they can now(or Monday) and still double down much lower. Just that few are so lucky for a 2nd chance.
So, shorty keeps at it until "it" does not work anymore, soon enough we will find out when that is....imo. If you love the stock, or better yet the company, I would not sell anytime soon, except if the price shoots way up to the $3 billion market cap and then either hold on, or sell some....depending on your patience level.
Mike, anytime you have a move like that in any stock you need to lock in profits. Since selling theunderlying asset in this case ACAD has proved to be the wrong move time and time again you just buy a few puts. I bought some in the money july puts which i pd for by selling some upside calls. I actully took a profit from the sale/purchace and the worst that can happen is i get the 22 strike for my stock plus the differance which worked out to be 60.00/contract Since i have been using options on my big gains they have made sleeping really easy.Mike
Well, no problem. I did not buy in the $2s but much lower than the teens, so was not too concerned, and I had about 50 or so $9 puts in case anything drastic occured. Many times those close to the money puts are too cost expensive. One strategy if a quick buyout was not looming, may have been to sell some near term calls and buy some oom July calls maybe (if you did not want to chance parting with shares near term) might have been the call at $20 - I just lose too often on options myself. GL!