|
Well, let's review the facts. He basically came in at $28 range. I doubt he is going to move out before he Pac Man eats up the short interest of 10,000,000 shares and hands the shorts their heads on a gold platter! Vinik most likely knows VVUS will have fantastic earnings and will move up anyway you slice it! He just can't bail out all at once by SEC law and he will slowly cash in blocks as the VVUS price is increasing. We need to watch the volume each day starting with Friday's volume. We need to determine how much is normal 800,000 plus normal trading volume and short squeeze covering. So, if we see 3,000,000 trading days(most likely we will)we can figure that 2,200,000 of that was part of the short squeeze.
Anyone out there want to be the VVUS score keeper of the volume starting with Friday? They can post the volume, est. squeeze volume, and VVUS stock price! That way, we can try to pin point the top and peak price for our PUTs, CALLs, and CCs.
The PUTs will come in handy when the dust settles and VVUS is hit with the profit taking. That will be the second Kahuna and our downside insurance with interest.
The CALLs will be our side show first wave Kahunas catching all the major waves Vilik leaves behind him as he pours blocks of serious money. Watch the open interest for clues what is going on! Volume precedes price. So, volume in Calls means the stock is staging an up swing. Volume in PUTs means the stock is perhaps toping out and pull back is coming.
The CCs will be our second wave reserves for downside insurance and last line of attack at that profit.
|
