Tried to place a out of the money short order and was informed that LOCO can't be shorted.
It maybe a great sign for us longs that the shorts can't add anymore to their position.
One thing for sure, the sellers are not selling because of MLNX results, over 50% YoY organic growth nor the guidance which shows continued strength.
There is no price war since QLGC and MLNX are not selling the same products.
There is a huge shift to the cloud that causing customers to buy from Melanox and not from Qlogic.
Just look at the guidance both companies gave, Melanox guided to 40% growth while Qlogic guided to 20% drop in revenues...
MLNX is eating QLGC lunch and dinner and people are selling because QLGC issued a terrible guidance.
MLNX is tn sweet spot and continue to do great.
I was not wrong. The June calls trading under $2 on a Friday before were a huge red flag.
Everyone knew the deal will be at $54, but no one assumed it will take 9 months to close the deal.
The option traders were smart and sold the June 50 calls for $2, everyone else assumed the stock would trade around $54 on Monday...
You are welcome,
June 50 Calls traders were correct to sell at $2 on Friday.....
It will take 9 months to get to $54, not many are willing to wait that long for the last $2.
I have a feeling, based on how the June 50 Calls traded on Friday, The deal will be closer to $50 than $54.
Let's see what happens on Monday.
Good luck to all,