Herbalife trades lower after news of top distributor's death
Shares of Herbalife (HLF -3.8%) are under pressure in early trading.
Perhaps weighing on sentiment is a report that 10-time top distributor of the year John Peterson has apparently committed suicide.
Peterson — who reportedly made ~$3M last year — exemplified the HLF dream, claiming to own a Wyoming cattle ranch as well as homes in Brazil and Mexico to which he traveled by way of a private plane.
Of particular note is the NY Post's contention that Peterson "rose with the help of an Internet-based lead-generation business" which the company banned as of June 30 on the heels of Ackman's short and what the Post says amounted to "hundreds of consumer complaints to the Federal Trade Commission in recent years."
Best explanation I have seen so far. Highly interesting that this has had a 5% impact on HLF price today.
I would say this price movement is a bit of a reach but perhaps his suicide note will have been personally addressed to Bill Ackman and contain all sorts of incriminating evidence...
Did something I never do... bought some 8/23 65 calls for $0.55 on the hunch this will snap back somewhat from the lows. We'll see whether I should trust my gut in the future. I'll close it by end of day as I have not desire to stay in it. This is purely a play on my interpretation of the trading session.
right now, it looks like buying HLF in this session is like trying to catch a falling knife. I am holding off on my weekly options until things stabilize a bit. Puts and calls are just too risky to write given the volatility in premiums this morning.
Institutional unloading of thousands of shares at once. This either a brief shakeout to get retail to sell or more likely very bearish HLF news has leaked to the hedge funds