****** Off Topic - McNabb ******
Hank and Mike McNabb came on to thread sometime in early October, about the time DELL went over 100. As I recall, one of their investment friends, a 'Roger Babb' had selected DELL as a short pick, because of its all-time high and its inflated PE. They began to short, and stated that they expected DELL to fall to about 60-64 per share. They continued to short, reputedly several thousand shares worth. They chose not to cover when DELL went to the lower 70s, then rebounded, believing that it would still hit their target price of 60.
They sold a lot of short-term naked calls to finance the operation, and through December (maybe January) made a fair amount of money selling those calls which expired valueless. In January and February, however, DELL began to move. I do not have any idea how many naked FEB 100, 105, and 110 calls they sold, or how many March 100, 105, 110 calls they sold. Supposedly they had about $30+ million to play with, and were willing to put all or most of it on the table to back their play, riding their short to $200 and beyond.
And you are wrong about one thing. "We" did not eat them for lunch. DELL ate them for lunch, as we warned them numerous times. We don't enjoy seeing anyone losing money on DELL. (Ask Flamethrower, another trader who likes to short. We saved him a ton.) I guess that we do have a tendency to say "I told you so!" when excellent advice is ignored. I am sorry that they lost money, because IMO they were straightforward and honest about their trades and positions.
You probably should contact Hank or Mike to get their version: go back to anytime after mid-October on this thread, locate one of their posts, and post a message.
Regards, 3. |
