Thursday, January 10, 2008
CFC buyout drama begins
We saw the same drama with Accredited Home Lenders. Once the stock hits the low single digits, desperate institutional investors create buyout rumors to pump and dump the stock. I covered half of my position at $7 / share. I'll look to cover the rest if the buyout rumor falls apart. Be prepared to sell shorter dated options and buy longer dated options. This type of drama can take months to play out.