Vodaphone short at 164.3

[kkarank_1]

Was that the right move ?? The stock seems to have jumped up miles in the last three days - any recommendations on whether there is any money to be made in this position ?

 

[toxictrading]

i dont know, but personally i think that if you are having to get confirmation of it being a good trade by asking other peoples opinions of it then its time to get out of your position, probably not what you wanted to hear, sorry

 

[kkarank_1]

yes - thats not what i wanted to hear - what i was looking to find out was if there are others in this position and what they think of it - thanks for your comment anyway

 

[Jack o'Clubs]

Bull points: Flight to quality, no debt, big cash dividend payer. Decent divi yield - 4%. p/e only a v. small premium to market. Pretty defensive in current market environment. If you were a bloody great pension fund and wanting to switch your money from financials where else are the mega-cap safe havens?

I think those are reasons why its done okay recently, not sure I'd short it. Not looked at the chart, but to honest I'm not sure I'd be shorting just because it's gone up for three days...

 

[kkarank_1]

guess we will just have to wait and see - i guess i jumped in too early - should have waited till for another couple of days before opening up the short position - after all - its running close to 170 which is like its 5 yr high ..

 

[grantx]

Kkarank,

With a beta of 1.1 and a correlation of 0.67 it could well go in your favour ( and equally against). What about cutting your losses or reducing the holding? Maybe sell puts against it and collect the premiums (I suspect the implieds will be sky high).

Good luck.

Grant.