Give me a break. I gave you the date and then you said the best you could find is breakeven. You can't even say you were wrong. And then you try to change the argument saying the paired trade was better than just simply long Baba. That was not the debate at all we were having.
You said everyone is shorting Baba and going long Yhoo and that it was always a winner. You were proven dead wrong.
No kidding that is why the stock is down some 50% in 4 months. If someone comes in and gives a strong vision your short thesis might be toast.
Is TWTR a no brainer short like NFLX? I looked at your July 24th post and you said you were shorting NFLX which is up 12% since your post (even though market is flat during that time). You also mentioned you were shorting MCD and AMZN. MCD is slightly up and AMZN is basically flat.
Your recent track record looks very spotty so I am not going to trust you here. I think a TWTR short right now has the potential to be very dangerous.
Seems like turnover of the staff that led this stock to falling would be a good thing. If you base your entire thesis on some staffers leaving then I would hate to see your investing track record.
Might be $0 if they go bankrupt and $10,000 if they dominate the world.
Nice informative post there (sarcasm). Can't believe I am responding to such drivel.
"In fact, the worst I can find on this trade is if you had executed on 1/26/15 and you still would have broken even while you would have lost 24% in BABA alone."
What are you talking about? I told you YTD Baba is down less than Yahoo. If you placed the trade on 12/31/15 you are losing on this trade? Why are you ignoring this and saying the worst you can find is break even???
My calls expire in 2 weeks not next week. I usually don't see such a big drop right before earnings. Normally I see an IV expansion but with this market the IV got crushed today well more than just 1 day's worth of time.
But hopefully it will move up next week.
Actually premiums decreased. I held the Aug $80s and they dropped 46 cents today when the stock only dropped 16 cents. The implied volatility took a crush today. Check it out.
wuhanwillie, can you answer this question?
You keep pointing out that Baba shorts are hedged with Yahoo. This makes no sense to me since Yahoo YTD is down more than Baba. I would think if so many shorts are hedged with yahoo then buying pressure would move yahoo up (buy yahoo sell baba). Why is yahoo down more than Baba YTD if all these shorts are hedged??? Why is yahoo going down more than baba? Makes no sense if so many are buying yahoo to hedge as you claim.
Owning both is probably decent. But if I could only hold one I would pick DIS. They have many catalysts coming up and this dip will most likely be a good buying opportunity.
I disagree that hedge funds are shorting BABA and going long Yahoo in huge volumes. Yahoo shares are extremely low right now They would be much higher if everyone was doing the hedge you mentioned.