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Synthetically Speaking

Posted on July 02, 2008

Interesting thought here from Stacey Gilbert on Fast Money last night (hat tip Kevin).At about 11:00 of the video on the bottom of this page she discusses going long beaten down and heavily shorted VMWare (VMW) , Sears (SHLD) , and Under Armour (UA), but with a twist.But instead of buying the stock, establish a position in the options market by buying calls and then selling the corresponding put. Why? She says it will allow you to establish a synthetic position in the company and enhance returns if the stock gets any kind of short squeeze.Forget about the merits of going long these pups for ...

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calls , going long , markets , options , puts , short squeeze