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Blyth, Inc. Message Board

  • adinvestor1965 adinvestor1965 Sep 1, 2013 11:45 AM Flag

    Huge Call Option Purchase Friday

    The 200 Oct 10 calls purchased Friday is enormously bullish and whoever did it is going to make a kllling. Some funny comments on here suggesting that the call volume is bearish. This is the kind of commentary you get from short sellers who just got caught and they feel the squeeze starting to tighten around them.

    If someone thought BTH was going lower, they would not write covered calls as the poster on here suggested, they would sell the stock. BTH is oversold by every technical measure and ridiculously cheap by every fundamental measure. This is because speculators believe the underlying business is not going to make it. If they are right, this stock will trade down much lower than any 2 months out call premium.

    I think the shorts are wrong and I think the comments and desperate posts we are seeing over the weekend reflect the desperation of some of these shorts who are going to have a very difficult time buying to cover on Tuesday, as they all push to towards the exit at the same time.

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    • If you noticed the tape as well, it looked like someone else still a buyer at 50 cents of Oct 10 calls. They probably just didn't get filled on all they wanted, but scooped up everything they could. I wouldn't be surprised if they are both purchasing the stock the options at the same time, just using options as leverage to control even more stock, or they just didn't want to put out an order for over 20K shares in the market since it would shoot it higher as they were acquiring.

      Sentiment: Strong Buy

      • 1 Reply to brad_welsh
      • Noticed there are short sellers freaking out on this trading holiday as they try and make it appear that the huge purchase of calls options Friday was actually a sell. Anyone taking the time to look at the volume and price from Friday will see that it was a buy order at the Ask that did not even completely get filled because the market maker did not want to fill any more at that price and moved it higher the ask higher, making the remainder of the order become the bid price into the close.

        Nice try short sellers. Your best bet will be to buy to cover at the open on Tuesday morning. If you do not heed this advice, by Wednesday morning you will be wishing you did.

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