Bogus buyout announcements

Discussion in 'Trading' started by Jdesey, Feb 5, 2022.

  1. Jdesey

    Jdesey

    The latest bogus by announcement is the after hours article Wall Street Journal yesterday stating a buyout of PTON by AMZN. This is very similar to their announcement of the buyout on PINS and KSS. in these articles they say “citing someone familiar with the matter“ of course they have no source to quote at either the buyer or seller companies.

    Of course it’s never true and this is not announcement from either the buyer for the company being bought. Within a few days one of the companies comes out and denies any truth to the whole thing. And the stock tanks.

    There are real announcements like when Amazon made announcement they were buying Whole Foods. Those are real announcements made by the investor relations department of those companies.

    So this is becoming a very easy trade for all of us. Look for the bogus announcement and buy puts or short the stock at the next market open.
     
    Grantx and VEGASDESERT like this.
  2. GotherL

    GotherL

    Yeah, I was already planning on selling my PTON 26 calls on open and swapping them for puts.

    Might take an OTM call as a lotto if the rumor does turnout to be true tho.
     
  3. Jdesey

    Jdesey

    Well we’ll have to find out what I bet either company comes out and denies the rumor within the next few days. Look closely at the Wall Street Journal article from after hours yesterday and there’s no source at either company
     
  4. SunTrader

    SunTrader

    Buy the rumor, sell the fact.
     
  5. newwurldmn

    newwurldmn

    has it been proven false
     
  6. Jdesey

    Jdesey

    I’ve been looking for an article today denying the rumor. Do you have a link please
     
  7. GotherL

    GotherL

    However, it does make a lot more sense AMZN or NKE will buyout PTON vs PYPL spending a third of their market cap or w/e to buy PINS.

    I am still selling my calls on open. Not taking that gamble.
     
  8. Jdesey

    Jdesey

    I’m not in charge of these corporations and neither is anyone else on this board. But to me buying Palaton at this time at the end of Covid it’s like buying Hertz at the start of Covid. Their run is over as people are back out and the gyms are reopened
     
  9. SunTrader

    SunTrader

    Umm PTON is down around $40 billion in market cap from its highs. I think potential buyers know Covid run is over. Maybe, if the rumors are true, a potential buyer thinks they've drop down into their "buy zone".

    Who knows - but lol all I know I wouldn't have bought any stock or options (other than short) with the way price has been in a steep decline for a while.

    Picking bottoms gets you stinky fingers.
     
  10. VEGASDESERT

    VEGASDESERT


    Agree, this smells stock manipulation bullshit rumor/news.

    Somebody cleaned up.

    I've been eyeing PTON as a good swing buy at 25ish
     
    #10     Feb 5, 2022