Maybe, but I wouldn't hold overnight if you don't get that bounce you''re looking for. I sold the last of my long position yesterday because I didn't want to see if $60 held. Glad to be out, but will watch for another opportunity to get back in--probably at a lower point.
I also complimented you on your successful trade. Just chatting. No, I won't bash you if your trade doesn't work out. No one here really KNOWS what the stock will do. We're all just placing our bets. You make some good points, but stock is holding up well so we will see.
Thanks for responding. What strike and expiration date? For the record, I'm not against shorting at all, and play both sides myself. I AM against naked shorting which is often used to destroy companies, especially biotechs, as well as those who trash talk, call names etc (long or short). Congrats on your short, hopefully you remaining puts won't be as successful.
OK, I admit it, "hoping for" might be more accurate, but we rallied after what looked like it would be another ugly pullback. If we get upward movement in the morning, shorts could begin to run for the exit as their gains begin to shrink. But we probably need a decent overall market for this to happen.
value--If the stock runs higher where will you cover? Every good short needs an exit plan. I sold 2/3 of my long position Friday as it began to pull back, but still think we could see $70 in a fairly short time. If we get back near $60, I'll sell the rest of my long position. If we see gains again tomorrow, I may sell the Apr $65 calls for a nice premium.
Not at all. You may be right, but relative to recent performance it appears to be bottoming. Stocks move on momentum these days (what you're capitalizing on), but when former high fliers correct and then bottom, the move up can be sharp. I'm in here short term thinking this is likely where it happens. I might be wrong, but so far it looks good.
Only if the overall market continues pulling back. FEYE is far outperforming the overall market today. Tech stocks off .5% and FEYE up a buck. With a decent move in the market FEYE could easily gain $3-$4 in a session. I expect it to happen soon. Those who shorted have made great gains. If they are greedy they will see part of those gains disappear. Lower volume is OK for now, as it tells us the heavy volume from the lockup is about done. Plenty of buyers are waiting in the wings on this one, and as soon as they feel comfortable this correction is done, they will come flooding in and shorts will run for cover. The short who covered too early a few days ago and went long yesterday is the smart one IMO.
Smart shorts have made very nice gains here, but they're the flip side of longs when their stock has performed well. Don't want to end a good thing, so they will hang on hoping for the stock to fall further. They will be the fuel for us to move higher from here as they start the momentum back to the upside. Momo players and bargain hunters will add to the move. Cover now or watch your short gains diminish over the next week. FEYE is now in bargain territory.
It is also easy to push a stock lower, especially when buyers step aside as lockup expires, as they did today. This has fed on itself to an extent, as fear of lockup expiration led to selling and then those finally able to sell after lockup expiration saw the falling price and dumped shares. If the market collapses, all bets are off, but if we see the high $60's in the morning, we are likely to see a reversal and a nice bounce back to the mid $70's.
Lockup of shares is late next week, so be aware of that. You can buy here and sell the Mar $80 calls for over $2--not bad for 8 days until expiration. If called away, you make a quick $400 and if not you lowered your cost basis by $200. Downside is if the stock has a big run by next Friday, your gains are capped. But not a bad way to ease into a trade.
Has been one ugly stock lately.
Buy some Mar $35 puts and scale in higher if we continue up. They're fairly inexpensive. Yesterday may have been another buying opportunity during a slow climb back to $40.
Wells Fargo near the end of last week was saying they think EVEP may have trouble covering the dividend. I received a call suggesting I sell.
This will be very orderly. Look for stock to finish slightly higher. If you're long, consider selling at least half your position and play with house money.
Take small gains and wait for the next spike as an entry point IMO. This stock is being supported. They will allow some variability, but I doubt seriously you will see it lower than $119 or so today.
I agree, but probably not a safe short. If you believe the stock price doesn't make sense, that just reflects other factors at work that we can't see or control. Some big player at this point is supporting the stock IMO and will collect all the premiums from put holders. After they harvest that $$$ and take their own short positions, they will bring it back down.
And don't look now, but volume is picking up in a market where many stocks are seeing low volume trading. Already have our average daily volume.