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Re: sentiment_stocks post# 42788

Friday, 10/09/2015 9:59:40 PM

Friday, October 09, 2015 9:59:40 PM

Post# of 729763
Oh, maybe I'm just really slow on the uptake of Beach's theory of what's going on here. The original post had no mention of the July options, so I guess that's new. But let's talk about a couple of his claims and your response. Maybe you can help me see the light :)


"whoever added the 2.3 million short interest did so at a price that was mostly above the average strike price of the 2.3 million puts."

These shares were shorted between 9/15 - 9/30. The average strike price of the puts that would execute is above $8.


"It is common for a very large shareholder to "trickle short" shares when the stock has considerable upward momentum, only to buy it back when the stock starts trending down, in order to stop the trend."

The 2.3m short occurred from 9/15-9/30. In case you didn't notice, not a period of considerable upward momentum.

I am a lot more inclined to believe the short increase has more to do with overall market/sector pressure than Woody shorting the stock to save the day later. What happened to the Patient style long term strategy that Woodford manifests? Remember, the kind of investment horizons that take years. Now we are painting him as being worried about short term fluctuations? I think it's more likely that Woody is about to have 2m shares Put to him next Friday than the theory above. He probably never expected it back in July when most of the puts were sold.

Do you use ymb email? Sorry, missed my happy hour chance.
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