Majority ICAN's HLF holdings are call options, this proved that he is just a trader, not an investor
The biggest loss ICAN could have is only less than 50 Millions as reported, most of them are call options. He is a trader not an investor.. His bet is short term! SEC Inquiry is not a good sign. ICAN WILL GET OUT soon.
Even close watchers of the Herbalife (HLF) saga may have missed the significance of activist investor Carl Icahn’s use of the health-products company’s equity options.
Gonna squeeze ya a bit here.
Icahn built most of his Herbalife position with options on 11.5 million shares, D.A. Davidson & Co. analyst Tim Ramey notes this afternoon. Federal Hart-Scott-Rodino rules require a waiting period before Icahn can turn those options into stock. The period should end “on or about March 6, Ramey writes. Icahn can then yank those shares out of the securities-lending market, where short sellers turn to borrow Herbalife’s stock. Since HLF is already hard to borrow, that’s going to put upward pressure on the stock.
“[T]he impact of his position, quite apart from any actions he may take after the HSR review period, could be felt in early March,” Ramey writes.
In short (so to speak), an Icahn squeeze could be coming. From Ramey’s note following today’s Herbalife conference call:
He has already stated he is going to exercise the call options which will push the price upward and will be the start of squeeze. HLF will also buy back 800 million dollars purchase. Please short all you can.
No, all it proves is you're a #$%$. 3 months from now this stock will be above $70 if not higher. Maybe sooner. I've figured it out and WILL NOT BE explaining it to all you #$%$s. Remember what I said - mark this post... 3 months...
if he wanted to buy the stock, he would have just bought stock.
his options have a may expiry. more likely he will cover long before then.
his position does appear to look more short-term trade than long term investment.