Here is what happened:
(click to expand)
Commentary: Very interesting trade outcome. About 2 hours before market close there was a rumor (leaked by someone that obviously wanted to move the price) that P was in talks with their Investment Banker to sell the company. Well in 15 minutes the price shot up 12%. Those of us at StockJumpers glued to our Bloomberg all started laughing – loudly. It was of course, the classic tale of creating a rumor (whether true or not) that causes a frenzy of “buying the mystery” only to later be “selling on history.” We of course LOVED it, because it just created more room for the short. Their release had to suck for someone to leak this… and it did.
We of course doubled down on our short RIGHT THEN instead of waiting for market close. And at market close we shorted more… for a total gain of 18%.
The StockJumpers strategy end numbers for the Jump Zone calc:
Open SELL :$9.14 (15:55 est) Close BUY; $7.10 (11:45 est)
Jump Zone Profit: 23%