Good chance to make some cash on this event using options
For those that did their research and know this latest attack is bunk, selling a put option at this point and buying a call option is a pretty safe bet. A march 16 $15 put is selling for $.90 while a March 16 $18 call is going for $.70. Seems like the market is realizing the seeking alpha article is bunk and prices how now stabilized and seems to be crawling back up again.
I was suprised to get $1.30 for March 14 puts, and that was not the best price so far, I'm already in the red on that one LOL
although the hit job may be BS IMO- the short author remains anonymous because he's afraid of getting sued (gee I wonder why), "a source familiar with the case" says ebix still under SEC investigation (anybody can say anything). the shorts were getting squeezed so they had to come out with another hit piece
but the shorts are well orchestrated, their attack comes when the broad market is at muiltiyear highs and looking weak, and if the broad market has a correction that will likely take ebix down further with it. If history is any lesson ebix price could remain depressed for a month or two (or more?) now that there are fresh "clouds" of uncertainty and doubt planted, which the market hates
I would not buy March calls- time decay is significant and who knows what kind of follow through thew shorts will have tomorow
maybe a lnger dated call it one is really bullish but I am not
so I'm waiting on calls, althogh at this point I think that is likely a decent reward:risk profile. I would not buy near term calls though, there could be follow through from sorts as todays volume while high is not necessarilty capitulation level??
Good points PR. This is basically how the hedge funds that are manipulating EBIX. How better to make money in the stock market than to simply control the direction of a stock with fear and greed. I'm going to learn more about options and start using them myself.
It's pretty obvious that they have not made any money on this short attack despite dropping to $16.4. That was the price EBIX hovered around for a while before it's recent climb up to $19 in the past 4 days. Once their usual bag of tricks have stopped working they will either have to come up with something new or exit their short position. Keep some dry powder around in case they do manage to drop EBIX shares down to a price that you can't refuse at some point in the future.