When Harrah's, MGM and finally Station casinos got buyout offers Boyd Casinos (BYD) spiked 15% on speculation that it would be next. I thought it was unlikely and now, after rangebound trading for some time the MACD is crossing down and the stock has begun to fall. Moreover the CDS has tightened up - not a sign of a likely LBO.
Strategy: Short @ market, put an order to cover if it goes up to 47, or buy a call. Otherwise if it falls then cover after the drop, which should be at $42 or below.
No comments:
Post a Comment