Now that the shorts are covering, is it reasonable to sell into this rise?
it's a hostile takeover . Illumina (ILMN) is higher after Roche (RHHVF) offered to by the company for $44.50 per share in cash, an 18% premium to yesterday's closing price
Just sold at 54. I've sat by and watched too many times when shorts were covering only to see the price drop back significantly when the covering was finally over.
I don't blame you. I hope you made money on the trade This just in Illumina ILMN Robert W. Baird Neutral » Outperform $33 » $60 http://stockcharts.com/charts/gallery.html?ILMN
Given the recent ILMN move to over 51, and the low implied volitility compared to the historical volitility, would this be a good time to buy a straddle (if we are not sure which way this would move) or a bear put spread (if we think it will go down when the shorts stop covering).If so, which strike prices for the straddle or the bear put spread. Does anyone think IILMN can still go up significantly (which would argue for the straddle?My reading is that volitility is likley to increase over the next few months.David in Thailand
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