Strategy Description: Looking at a company that has been taken over for a fixed price as an all cash deal. Important to remember that if a takeover company is trading right on the price people may be anticipating a bidding war.
The way to counter this risk is to only short a company that has parabolic'd into the takeover price after starting initially quite a bit lower. Expect a bit of a flush through the price, but ultimately it is an amazing level to get size on the short, and cover most of size quickly for a scalp before catching a move lower.
It is a relatively shorter term trade idea. You don't want to be holding size for too long.
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