Good Morning.. First I want to start off by saying I am Long SD with Various Calls Options.. I would like nothing better than to see my account value increase in value over time.
Now that my position is stated.. I will say this.. I like what SD did with the New Offering.. it should be very good for shareholders going forward..
Over the years I have seen those who are short do various things to get retail shareholders to sell so they can cover shares they Must Buy Back..
They will Naked Short by selling shares they do not own.. They will lie outright.. Try to turn and twist events to their advantage etc.. They need your shares to cover.. They know in all reality it will be hard for them to scare out large Institutional type investors.. After all that is exactly the kind of money that scares them into covering etc.
A lot of times when it looks like very good news is out.. IE last night etc.. Everyone then starts to expect the PPS to move up.. Shorts will try to hold the PPS down maybe even try to crash the PPS to get into your heads to get you so frustrated etc that you want to sell this POS and go into something else. Do not fall for it..
I fully expect to see the shorts try to pull off a Bear Raid.. They do these raids when some least expect them.. They send in a large Market sell order in the afternoon when most traders are not looking or out to lunch etc.. They drop the PPS hard and fast to take out your stops etc.
I have seen this many times.. With RMBS, DNDN, MNKD and others over the years..They are good at what they do.. They need the retail shareholders to panic and sell them the shares they need via your stop loss sell orders etc..
My best advise is to use Limit Orders.. And do not even have a stop loss in place if you can follow the market etc..
I feel this recent offering will be very positive for shareholders over the coming months.. Smart and legit shorts will cover and hedge etc..
If you stay the course I feel the PPS is going higher over the next year.. Traders can get in and out.. Nothing goes up without various pullbacks etc.. You need movement to make money.. Buy & Hold today is not what it once was..
Be smart.. Buy some dips or sell some rallies..Be prepared to see those who are short try to frustrate you. Try to crash the PPS via a bear raid etc because they will need you to sell to them.. I am not saying it will happen meaning a Bear raid etc.. But it would not surprise me if they tried to pull one off one of these afternoons etc.
I plan to sell some of my Jan Call options any day now and use those $$$ to buy more calls at different strike and month.
Good Luck to all over the next few weeks.. FFB-Fish
I believe the last few days have been eactly what you are describing here , low volume volatility . 7.10 - 7.60 , quietly wxitinf short positions , accumulating long ( hence high call volume hedging ) ..... I am sure just as the institutional longs "pull the rug out" on a long position , they also use 3 or 4 days of manipulation to exit a short position ..... the unwary private investor is mainly the guy that gets caught in the "squeeze" ..... You can bet your boots , Wall Street knows the "news" long before we do ... You think Morgan Stanely didn't know this was coming ??????
good post and great information. I do use a lot of stop/losses when investing. I haven't been burned that bad in the past although I do remember one time that was very painful. I'll try some limits also..never really thought that could happen but with such a massive short position in SD, I can see your point.
I also want to say something in regards to a Bear Raid etc.. This news is notwhat I call a Binary Event.. It is not something that will rocket the PPS up or down several $$$
What I mean by that is this.. Lets look at MNKD it is due for a FDA Ruling sometime in the next three weeks in regards to their Afrezza an new way to take Insulin for Diabetics.
If the drug is approved the Stock PPS could go from the current $8.38 to $15 almost over night.. If the drug is not approved the PPS could just as easily drop all to $3.50.
Some are hyping others bashing MNKD.. Lots of $$$ are on the line.. The FDA Ruling will make or break some all depends what side of the trade your on..
In regards to SD.. This news is in my opinion is not the kind of news that moves the PPS several $$$ all at once.. It should & could move thePPS up $1-$2 over the next month.. That will and could lead to a nice increase in the PPS as smart shorts cover etc..
Still the shorts will do what they can to try and get into you head etc that this is not a good deal for SD etc.. This is like placing a bet on Management to do what they feel is best to increase shareholder value etc..
I also feel there will be a time when the PPS goes up to far to fast and a smart savy trader can make some decent $$$ going both long or short..
I have no problem with someone going short etc.. I just do not like how some over hype or bash a stock just to put your money in their pocket etc..
For now I will let the market tell me what to do with my SD Call Options..Again all MOO & GLTA FFB-Fish