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Herbalife Ltd. Message Board

  • fastmoneypete fastmoneypete Aug 8, 2013 4:19 PM Flag

    Wishing for an SEC investigation on Soros HLF trading et al is a double-edged sword. Here's why:

    Several weeks leading up to the now infamous Herbalife December 20 Bashfest, we saw interesting (mildly put) put option activity on the Dec 29,30, and 31 puts. In fact, the common was trading in the mid to high $40s at the time. Now with less than 14 days to expiring worthless, these waaaay out of the money puts would be "in the money" if HLF shares were to drop by a staggering 35%!! And yet over 20,000 traded at the ask over a short number of trading days, which portends to a concerted effort of traders or "institutions" at work looking to book a massive profit should shares plummet before expiration. Well, on December 20 - one day before expiration, it happened. HLF shares fell an incredible 35% to trade in the 26's. Come on, one day before expiration and some sketchy institutions got "lucky" and made huge bank???????
    It behooves me to speculate that a massive short seller had orchestrated some of this by "hinting" of the enormous short bet on Herbalife of nearly 20% of outstanding shares to all but a few privy comrades at an "ideas" meeting, before either the 13f filing or December 20 presentation.
    Anyhow, would the real Insider Trader please stand up.....or better yet, would the SEC investigate the buyers of those huge put contracts in December 2012?? I bet we would see an interesting pattern of Bill's friends emerge from those books. Remember, Ackman held no put contracts whatsoever. And what if any role does Einhorm play in this saga dating back to the May 2012 earnings call-in?
    Bottom line, I believe the Soros innuendos pale in comparison to the roles perpetrated by the institutional short sellers in this epic Battle of the Titans.

62.59-0.01(-0.02%)Oct 21 4:02 PMEDT