GNC - Our GNC Option Strategy: A Successful Failure
GNC (GNC) has been the subject of periodic commentary by us for nearly two years. We consistently stated our rationale in many of these commentaries and the corresponding comments for using short positions in put options rather than holding common shares outright to gain exposure to the company’s prospective undervaluation. Our approach was based on our view that, while the company’s shares may be undervalued, there was significant uncertainty around that assessment and the appropriate valuation. The use of put options allowed the potential for profitable exposure under most valuations within our established