The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.BEIJING ( TheStreet) -- In March, Absaroka Capital (a firm I had never heard of) published a detailed report alleging fraud at China ShenZhou Mining (SHZ). Without bothering to read the report, I immediately bought as many puts as I could. Given that the stock was already plunging, I couldn't get many puts and I overpaid for what I did get, but the share price subsequently fell from over $5 to below $3, so it was a worthwhile trade. I fully expected SHZ to go below $2, but the volatility (i.e. price) of the puts was so high that, at $3, it made sense to sell the puts, so I exited.
Blindly Shorting China Stock Yields Big Return
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