Sell Alert: October 8, 2013

| October 8, 2013

Sell Alert:  October 8, 2013


Trade Details

Sell Outerwall (OUTR) October $65 Calls for $0.90 or better



When OUTR dropped substantially in September, it surprised a lot of people, including me.  At the time, I thought the selloff was overly harsh.  However, I certainly did not expect the stock to rebound before our options expired.

Nevertheless, it looks like at least one major player saw OUTR’s selloff as an opportunity.  In fact, Jana Partners just took a 13.5% stake in the company!  The shares soared on the news.

Let’s not second guess this one.  While the stock could continue to climb, we’re getting into major time decay territory.  I don’t like taking a loss, but these options were dead in the water – so recouping a decent chunk of our initial investment is an unexpected bonus.  Let’s sell our calls here.


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Category: OTW Sell Alerts