Phil King from Regal Investments shorted CBA in June $120. He said he is still short and didn't unwind any positions. He must think it will go below $120. Which is more than reasonable because there was no rational reason for CBA to pass $120 in the first place. $120 is when this stock PE ratio is 20 - which is still a very high valuation. Not as ridiculous as 25 times earnings, but still very steep. I know a simple PE Ratio isn't the only way to value a stock, and in some cases its absolutely not the way to evaluate, however for a company like CBA - what other metric would you use other than the earnings ratio and dividend yield?
My put option is now up 250%. However I'm not cashing out yet. The expiry runs until mid-January, which is more than enough time for the SP to further unwind.
Get out while you can. The sell off will continue
CBA Price at posting:
$132.74 Sentiment: Sell Disclosure: Not Held
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