07-13-2012, 08:11 AM
Don't put anything past the shorts or the option players. IOC stock has had at least one bad daily drop every option expiration weeks since Feb. Usually Monday or Tuesday of the option week, IOC has have a 4.5% drop or more in stock price with the average 5.5%.
The last day of the month has also not been kind to IOC stock either. For the 1st quarter IOC stock was down the last trading day of the month all three times with an average drop of 4%. That trend was broken in the second quarter with all three days up, yet the average daily performance for the final day of trading is down 1%.
The shorts are a ruthless bunch, usually well-funded, and more sophisticated, but they are not infallible. I have also seen them turn on a dime, cover and go long as they try to recover a loss from their short book. I don't understand their end game. I know I am biased, but the upside look far greater than the down side. Just ask any short who didn't cover in the $30's, they have now lost more since Oct. than they could have made if InterOil went to zero. With everything falling into place (finally) we could see a double again. I would not want to be short IOC.
The last day of the month has also not been kind to IOC stock either. For the 1st quarter IOC stock was down the last trading day of the month all three times with an average drop of 4%. That trend was broken in the second quarter with all three days up, yet the average daily performance for the final day of trading is down 1%.
The shorts are a ruthless bunch, usually well-funded, and more sophisticated, but they are not infallible. I have also seen them turn on a dime, cover and go long as they try to recover a loss from their short book. I don't understand their end game. I know I am biased, but the upside look far greater than the down side. Just ask any short who didn't cover in the $30's, they have now lost more since Oct. than they could have made if InterOil went to zero. With everything falling into place (finally) we could see a double again. I would not want to be short IOC.