It might seem a bit stupid at first, but I'd like your opinion. I dont own a whole lot of this, but seeing it has dropped from 95 to 21, and is now barely back up to 24, i got in long. Now I am reading about the walnut growers stories, and the re-release of proper numbers, and other negative reports linked in some of these posts.
I was thinking, what if you were to double down on your investment, SHORT. If you own 500 shares long, then short 500 today just before closing (but dont sell your long)
That way, should earnings and CC come out negative tomorrow and this thing tank, you wont lose a penny, because your long losses will be offset by your short gains. After the tanking, you could cover, and remain long. On the other hand, if this thing skyrockets, you wont gain, but can buy to cover your short quickly, and be back to your original long position as it continues to grow. (Dont forget about outside factors other than dmnd itself, i.e. stock market pull back, china news, israel/iran, greece, etc)
Of course, DMND could "reopen huge" IF all is good. Of course, the converse is also true; witness:
The news of Mendes and Neil getting the boot and P deal being nixed sure caught a lot of posters by surprise. Who knows what will happen. I must say I'm looking forward to see new short numbers...if not many shares have been covered, this will give me pause; what do the shorts know that we don't? (Note: the shorts (so far) have done extremely well; longs, not so).
Yes, I'm long; just being realistic and open minded.
a better strategy is to sell stock short and then buy a few extra calls if you own 1000 shares, buy 12-14 calls
this way if it tanks, you make big bucks. If it goes up you still make something. if you buy long and short at same time, you have a NET 0 position, you cannot make money irregardless of what stock does, that infact is ridiculous. (your just out in commisions)
I'm sorry but this is one of the stupidest posts I've ever read. Your idea is very unsound. DMND has made it real clear that the restated books are months away. The article that was out today is very old news. The effects of the Walnut growers was already factored into the price. The downturn today is because of uninformed share holders who don't know that I guess. Reuters must be short or looking to buy at a lower price. Todays action is just plain silly after yesterday.
well sorry, didnt mean for it to be a stupid post. earnings releases are months away?? I got my info from earningswhispers.com, they state that dmnd reports tomorrow (3/8) after the bell. No matter what you say, this will still happen, they will release earnings tomorrow after close, and they will have a conference call stating how they have done, what they expect the business to do in the future, etc.
As for the puts and calls, I looked into that, and the premium is a fairly good percentage. Selling short against your long holdings does NOT cost the premium that buying a protective put would. And again, if this thing tanks tomorrow in AH, you wont lose a penny, because your short position will gain the exact amopunt that your long position loses. I was wondering how people thought the earnings report and CC would be when it does indeed happen tomorrow AH, NOT months from now!
Conference call tomorrow? Did I miss something?
Not really following your logic on being short and long. Like betting on red and black at the roulette wheel. You can do this much cheaper with a options straddle.