6/16 Best idea, A $3.8B Activist Name With 200% Upside?

My best idea this week is a sub $4b company that an activist is currently attempting to turn around down 50% off it’s highs from 18 months ago. The activist also feels there is near 200% upside in the stock according to their recent proposal to the company. It was littered with bullish option flow over the past week and has been for weeks on end. The setup is there for an extended run if the market cooperates and as I always do with these, I try to highlight high quality names you can buy and hold in your book. While they may be the best idea for the current week due to the setup, they’re all names that you can put in your book for a longer period. Also for those who want to play short term I will go over how, utilizing options, we can put on a free trade where you can buy the stock for a large discount or profit if it makes a run. The risk reversals become a thing of beauty when you take something like the trade I suggested last week on COHR, put it on for pennies and it was worth $10+ by the end of the week. That is some serious reward for the risk placed.

Lastly, I want you to remember that what happened this past week with COHR with those January 2024 calls I suggested a week back going for 500% in a week is highly unlikely to occur again so please don’t bump up your position sizing or anything reckless because last week was a major outlier and likely will be forever. In my entire career I’ve never seen a real multibillion dollar name, not a penny stock, run 50% in a week, I don’t expect to see anything like that ever again.