TransEnterix(TRXC)

Caught my attention on a recent and large spike which was largely the result of a very shady rumor that Johnson and Johnson may be interested in purchasing the company. I nearly put in the order below as a surrogate for shorting the stock but held off after digging a little deeper. No, I still don’t think the company has a near term future but, I also think the folks behind this company can keep the stock up a little bit longer and potentially squeeze more shorts. Here’s why. First , there is a dilution of shares on the horizon due to a new funding deal which if approved by stockholders will result in a lower stock price but in the short term that means management will do its best to keep the shares pumped with promotions and rumors and to that end there is a medial conference which takes place March 16,17,18th and culminates with a meeting with investors. So , we should likely see the stock rise just a bit more on Friday and Monday as traders get duped over the next few days. This is why I held off on executing the trade until Friday but now its on . I sold the April 5 calls and pocketed .45 for the premium and Im not planning on giving it back. As my safety out, there will only be a rolling up to a higher price or further down the calendar if the position goes over 5 at any point between now and APril 15th expiration

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