In my view, this is a gift for the retail shareholder and shouldn't be a surprise given the telegraphing behavior of the recent Analyst activity. Select institutions wanted a new or larger seat at the table, and now they're getting their chance.
I was lucky enough to close out all of my OTM 8/14 calls before this afternoon's news appeared to drip into the market, though I missed the opportunity to sell calls on my long PLUG holdings and harvest premiums. The stock is likely stuck in a decent range for a bit, which generally dictates a trading window to preferably be selling near dated call options vs buying them.
I will purchase PLUG shares with this news, and my window to buy is late Thursday afternoon or Friday's trading sessions. If the market appears determined to pressure the stock going into the weekend, I may wait until Monday but not longer. I want to give the institutional players a day or two of trading to finish their hedging plays before pulling the trigger on buying. If it bounces before then, I will sit on the sideline and watch the stock closely next week.
For anyone concerned about this equity offering, please take a look at AMD's equity issuances coming out of the great recession of 2008/2009. Sometimes these capital raises are defensive, and other times they're about implementing an attack offense game-plan. In my opinion, PLUG is about to launch a full scale frontal assault, and the institutional herd should enthusiastically gobble these shares up.
Lastly, if someone wants to get a little crazy with rolling the dice, the March 19th $14 calls could tickle my fancy if they are available under $2 per share in the short term. I'll be keeping a close eye on them as well over the next few trading days.
GLTALs
p.s., I've been asked this question so want to address it - I am NOT the "Peter Pan" who posts on the Yahoo Boards...I do not post on Yahoo and do not plan on it anytime soon.
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