Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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 Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!