One stock I've been following had just announced a secondary public offering of stock recently. They'd been trading at $65 in the morning and the offering would be at $62 on Friday. Within an hour the price had dropped to $63 by the time I noticed.
I am a fan of the company and invested in this company at a good price, unfortunately the price won't be going up for the next few days so I've dumped my position and taken a short to take advantage of this arbitrage opportunity. Come Friday, the price of this stock should be at $62 at which my limit buy will kick in to turn my position around.
Within 15 minutes of taking the short position, the price has already dropped below the $63 I shorted it at. I've already setup a stop limit at $63 and a buy at $62 to make a tidy profit, it'll be interesting to see how things go.
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