David Einhorn Has Closed His JCPenney Short Position And The Stock Is Spiking

Greenlight Capital's David Einhorn closed out his JCPenney short position in the second quarter, according to a letter sent to investors, Reuters Katya Wachtel reports.

"We covered when the Board fired the CEO before he could turn the company into a penny stock," Einhorn wrote in the letter.

It's trading higher in the wake of the news.

JCPenney's stock was last trading up about 2% in today's session.

The struggling retailer is the stock that activist investor Bill Ackman has been publicly cheerleading for over the past couple of years.

So far, Ackman, who has has 17.74% stake in JCPenney, has taken a bath betting on the retailer.