No doubt in my mind a short squeeze is coming, but I thought Ackman covered his short shares and bought/is buying puts. At least I recall him saying such a few months ago. If that is the case he will only lose the premium on the options, but those short shares are going to get hurt badly.
How is that even possible? Almost back to 50. woot woot.
You never heard of privacy? I don't think the IRS can legally provide that information to the crybaby. Congress can't even get the Director to cooperate with them.
Selling calls to grab the premium is not a bad idea if your direction is correct. I think you are wrong. I bought back puts to close contracts sold earlier for a 50% of potential winner today. I am not sure why anyone would want to buy the premium when it is so high. Maybe buy put spreads to offset some of the vega/theta burn.
Herbalife (NYSE: HLF) today issued the following statement in response to statements made today by Bill Ackman:
“There is simply no truth to Bill Ackman's statements and this is just another stunt in his campaign, a campaign that is reportedly under criminal investigation by the FBI and the Department of Justice, to drive down the stock price in an effort to enrich himself and his investors in advance of options expiring on Friday. Unfortunately we have seen this pattern of activity before, especially before the third Friday of each month, when certain options expire.”
So they were part of the problem when the stock was under pressure. Now the stock is in better hands. It should be up from here.
Could it be they base their margins on the Brent and WTI price gap? When the gap shrinks their margins shrink. Iranian oil on the market will certainly cause the gap to shrink. Hopefully that won't happen for years.