The E. W. Scripps Company (SSP) is buying ION Media. Buffett is helping SSP by making a $600 million preferred equity investment. However Buffett is getting very attractive terms that are not available to regular investors. The stock has jumped 56% to $16.31 in the premarket. The short zone is $16 to $18.88. Maximum recommended position size is 25% or less of full core position size. The problem with this trade is that the ideal place for a stop is over $23. Consider stops on one-half of the quantity in the zone of $20.11 to $20.56. On the remaining consider stops at $23.11 to $23.67. The plan is to short more if it goes higher. The first target zone is $12.50 to $14.11. The second target zone in the long term is $6 to $8.36.
This post was just published on ZYX Short Sell Change Alert.
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