Passport Capital as of Dec.31 had a huge position in the X calls about $200,000,000.00 according to SEC 13F Filing. I think its overbought just as Mechel is too... Today is a good short entry over the next 3-4 weeks.
X is the most overvalued and fundamentally desolate company in its industry. As a result it has a nearly 20% short interest, a "days to cover" ratio of 17.3, and a shortsqueeze.com ranking of 267. You don't want to waste your swing trade capital getting short too early, IMHO.
doji, I don't swing trade, I work in the steel fabrication industry, so I see stocks like these and am skeptical. If you have a long-term objective, you can roll into this and make money on the short side given the dynamic and outlook of what I see for Q1 in the steel biz.
I agree with you fundamentally and I in fact want to score a home run with X puts, but I also want to be sure it's ripe for the picking because the market can remain irrational longer than I can remain solvent.
9000 March $40 puts were purchased on Friday, $13 dollars away from the price target with a month left until expiration. What's up with that?
They only cost a quarter. I only see 3500 or so trade on that strike. Perhaps someone sold puts when the stock was much lower and wanted to free up margin for other trades?