long short position on ASM

8 ส.ค. 2017

ASM

The stock ASM has been going through some cyclical change. Due to underperformance on the balance sheet side, the company broke its cyclical turn. I believe that there is still room to short. The best instrument to use would be put options with the strike price closest to the actual price, and the expiration at the earliest date given. If you go along the put option route I would suggest taking short positions because they have less risk, and if the stock drops more than the short position will outperform the put option. Be aware of the fact that the put option may be harmful to the portfolio because the stock is no longer driven by cyclical turns, therefore the stock can open at a different price, and options contracts are executed until the market opens, so if you get options when the market is closed you make be at risk for a loss if the stock opens at a different price. To hedge some of the risks from the short position you could be long positions if you feel the need to.