Dark Money Sell Alert: Take 14% Gains on L Brands Calls
LB stock had been rising steadily until an abrupt decline this morning on news that the board will move ahead with a tax-free spinoff of Victoria’s Secret as a separate public company. When complete, current shareholders will own a lower-priced stock in LB, plus they will receive what is essentially a large one-time dividend of shares in the new public company. This should cause a large, automatic adjustment to LB call options by August. Considering all this, we recommend locking in a solid gain on your position.