Tomorrow's Trade: Short ATUS On IPO Lockup Expiration

Tomorrow, December 19, 2017 concludes the 180-day lockup period on Altice USA, Inc. (ATUS).

When the lockup period ends tomorrow, pre-IPO shareholders, directors, and executives will have the chance to sell their more than 233.0 million outstanding shares. The potential for a sudden increase in stock available in the open market may cause a significant decrease in the price of Altice USA shares. Currently, just 51.7 million shares of ATUS are trading. 

 This group is made up of three VC firms and ten individuals

If just a handful of these restricted shareholders decide to cash in on their positions tomorrow the marketplace could be flooded with shares. 

But there's still time to benefit from the downturn: it's likely that these investors will unload positions throughout the trading day - so investors who short ATUS early tomorrow can still benefit from the slide. We suggest that this type of aggressive, risk tolerant, short-term investor short shares of ATUS early in the trading session tomorrow, between 9:35AM and 10AM. Interested investors should then cover these positions either late in the trading session tomorrow or over the course of the trading day on Wednesday, December 20. 

Disclosure: We are short shares of ATUS

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any ...

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