Herbalife Ltd. (HLF)’ Options Activity: Is Bill Ackman Behind it?

Herbalife Ltd. (NYSE:HLF)‘s options are seeing an increase in activity and the buzz on the street is that activist hedge fund manager Bill Ackman is behind it. Ackman has been very bearish on Herbalife Ltd. (NYSE:HLF) since quite some time, last month  he even gave a presentation in which he declared Herbalife Ltd. (NYSE:HLF) a big Ponzi scheme and its CEO, Michael O. Johnson, a predator. Scott Wapner reported on the unusual activity going on in Herbalife Ltd. (NYSE:HLF)’s options and whether Ackman is behind it or not, on CNBC, recently.

“Some big activity in the options market today around that company. Some traders wondering whether Bill Ackman is pressing his short and upping his bearish view of Herbalife Ltd. (NYSE:HLF) once again. Here is a little background, back in January of this year, someone believed by people I have spoken with to be Ackman got a boat load of bearish put options on Herbalife Ltd. (NYSE:HLF), with a $50 strike price, those were said to expire in January 2015 [...],” Wapner said.

Bill Ackman in crowd

Wapner believes that since time on those options is running out, someone who made that trade in January,  bought himself some more time by rolling over his position for one more year.  Wapner also reiterated that according to the experts that he has spoken to, that person is believed to be Bill Ackman. He revealed that the person making the trade increased his size and has committed $50 million to that view. Wapner mentioned that when Ackman was contacted via e-mail regarding this, he didn’t reply.

” Herbalife Ltd. (NYSE:HLF) shares have been unbelievably active since the last month or so. The day that Ackman gave that presentation, which he said was going to be a death blow for the company, the stock rallied more than 20%. It was the best day that Herbalife Ltd. (NYSE:HLF) has ever seen as a publicly traded company. Most recently, the stock has traded in the other direction, on the back of a disappointing earnings report. So, it’s been all over the place [...],” Wapner added.

Disclosure: None

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!