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

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

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!