Everyone needs to relax.
You guys have not been paying attention.
What is the purpose of hedge funds like Baker Bros?
To make MONEY for their clients.
Do you guys really think they are just sitting with close to a billion dollars worth of stock and not making any money on it for the past year?
Of course they are. They are selling tons of calls and puts. They have made a killing doing it. They will continue to do it until they know the stock will be bought out.
Ask yourself what has this stock done like clockwork for almost every options expiration week? CLOSED AT OR NEAR MAX PAIN! This stock is EASILY manipulated because of a large percentage of retail investors/day traders.
Guess what Jan 17 is? The mother of all option expiration dates. Guess what the max pain is? $17! I was actually expecting a drop in price as we approached JAN 17... Though I didn’t know they would be able to get this close to max pain.
I also expected a lot of FUD to be released to aid them in this endeavor as we get closer to Jan 17 (JPM, UNH, etc). And I was not disappointed.
Baker Bro’s did not sell out when the price was trading above $26. If they sensed imminent danger, don’t you think they would have?
This should give you relief, as Baker Bros obviously believe the price will be much higher than $26 in the future. If I saw a 13G filed that showed baker Brothers have sold 80% of their position, THEN I might get worried.
It’s a sad reality, but this is the game. Options must die. Bakers are playing a long chess game, not checkers. They don’t care if their stock is worth 30% less today than a couple weeks ago because they know where it will be in the months ahead.
This is the final shakeout in my opinion.
If it were me, and I was playing the “game,” I’d let the final shakeout be patent litigation. Maybe news of not settling will be enough. Finally scare the last of the weak hands out. Simultaneously approaching 90% institution ownership and wiping out Jan 17 options.
Bottom line is, JT is executing his plan. The stock price has nothing to do with him. It is pure manipulation. Stocks that get bought out, almost always get bought out when no one expects it. Expect the same here.
Expect a HUGE 2020. But if you can’t handle it, grab an index fund instead.
