Gores Group hit the brakes on Manny, Moe and Jack this morning after the private equity firm called off the $15/share offer floated back in January. Shares fell $3 from the $15 level a month ago today on stalled earnings, and today are off another 21% to $8.72. Stock and option volume are near the 52wk highs set on Jan 30 when the offer was announced. Recall a week ago today we saw a buyer of 15000 June 9 puts for 30cents vs 11.12 stock (13delta). Those have doubled in price today for a 900K gain, but the stock leg (if still on) is a $450K loser. With the deal off the table, ATMIV in PBY is down nearly 15pts to 65%, in line with pre-deal fall 2011.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.