This is why I love stocks. Where else are you going to get returns like that!?
Let me tell you that one of my favorite things in the world is buyout speculation. I love it! People go crazy and act like the deal is done when in fact all that happened was someone speculated that talks may be in the works and there might be a buyout that happens someday. As soon as that happens 'Bang!' the stock jumps at which point all of the smart money starts taking profits and betting against it in the long run. The people who bought on the hype of the buyout rumors sell out at a loss.
I just made a play similar to this one on BBY (Best Buy) a few weeks ago and did great on that one as well. Now SPLS is following the same pattern. The stock is already down 2% on its high and will shortly go down to where it came from.
So I am REVERSING my position. sold out for a 15% gainer in 7 days on the up side and now and flipped to betting on the down side to ride it back down. Bought 7 $12.50 Put options with Jan 2013 execution dates today. This particular option lost 25% of its value TODAY! I'll be happy to take that 25% to the bank when the stock corrects off of rumors. I'm thinking a 2 to 3 week trade here at the most.
I'll let you know how it turns out!
Thanks for reading!
Straight from the Chart
Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.
