Quick note: Watch VHC tomorrow. The stock was halted all day and after hours they received a settlement of $106 million from Microsoft for patent infringement. With only $222 million market cap, the figure is pretty big.
This is a development-stage company that is trying to advance technologies for securing real-time communication over the internet. There is very little proprietary analysts' research on the company, so many factors are unknown as to how such technologies will be needed in the future as 3G and 4G networks continue to expand, as well as Skype and other similar applications using VoIP continue to advance. It is also unknown whether this settlement will open the door for future royalty payments or other forms of recurring revenue.
Will be interesting to see how the stock reacts tomorrow and what analysts have to say about the future (if any). I have no position in the stock or options.
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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