Novice Trade: Weight Watchers

I'll admit I am not a huge fan of Oprah Winfrey. I have also never used Weight Watchers (WTW). However, I do know that it has done well since Oprah bought in. I also know that the stock is extremely hard to borrow. Right now to get short through July expiration will cost the trader $0.35 -- that's about $2.65 annually or a negative rate of 18%. I also know that the IV of the options is at the cheapest level I have seen in over a year.

With the stock starting to climb, I believe WTW is getting ready to have a short squeeze that could push it toward $20.00. In the next day or two, if the stock keeps climbing, we could see the IV rally, the volume increase and the stock shoot higher as shorts scramble....38 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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