Don't mean to criticize-- I'm sure you have good reasons for what you did and I'd like to hear them.>>>
Wish I could give you a list of great reasons for getting into THQI again, but I really can't. Here is my rationale for the current position:
Back in December I bought MAR-30-Calls @ 2 11/16 (the underlying was around $24).
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I was able to sell these rather quickly on Jan3 and Jan10 at $3.50 and $4.375 respectively, for a quick 50% gain.
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I'll be honest when I say that I never really dug in and did any major DD on THQ, but one of the motivating factors for me back then was the short interest, and the upcoming earnings.
Now........
I wanted to be able to sit through two reporting periods for 2000 (hence the period; Sept). And the more distant strike of $25 was much cheaper than an at the money strike (hence the $25 strike).
Short interest may [again] be a factor, especially if there is an upside surprise in earnings.
Most recent THQI SI
Date ShortInterest Avg Volume Days to Cover
Jan. 14 5,620,920 808,679 6.95
Dec. 15 4,681,481 561,806 8.33
Nov. 15 5,600,229 755,918 7.41
I think THQ is a fundamentally sound company, and they should do well this year based on demand for their products. I have no interest at this time in becoming a THQ share holder, but perhaps I will some time in the future. Because of the high short interest, good fundamentals, and recent down-trend in stock price, I believe a med-term call position is justified.
Wish I could add more, but I'd be lying if I did.
Regards,
B |
