I like Najarian but I've had a hard time figuring out where this buyout is going to come from at $95. I'm long a position in DEC-13 $70 CALLS. I probably should have unloaded the position a $100 higher this morning but I had the takeover call in the back of my mind. (As I write this, I was thinking I had OCT CALLS). But still, I'm thinking I will probably look for a chance to unload later today at up around a 50% profit.
Following up, I didn't realize the short interest was so high in LULU. I don't think much will happen in the next couple of months but I could hang in there and catch some short-interest melt-up and even a run-up towards December earnings. ...On the other hand, ...It's maybe better to take a profit and come back to 'the well', later.
It's $95 as a take out stock, or if it's firing on all cylinders with a strong consumer demand. Unfortunately, it is none of the above. LULU will not see $75 until they can raise their forecast. My guess is that it'll be Q2 2014 at the earliest. I just covered my short at $66.40 this morning and I'll sit this one out.