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When is the next get together? I will be down around July 4th. Looking forward to meeting y'all.

Whoever it is bought all of those Jan 07 10 puts to hedge themselves vs the bonds.

the options should have the stock loan difficulty already priced in. The puts will trade higher than the calls by the loan rate. For a day trade, it really won't matter since you are looking for a specific move in the underlying.

Yep, Rearden really nailed it. Except for the dividend and stock loan issue, the trade was there. From my experience in the options game, there aint never no such thing as a free lunch. One usually gets the appetizer and entre, but the beverage could send you for a loop.

GE couldn't get antitrust clearance from the EU on HON 5 years ago, why would anyone else try?

Partial Tender: 5% of GM shares will be bought for say $32. 95% will be worth where they were $27. This adds .25 to the reversal price. Basically a special dividend. I am sure the futures market has the hard to borrow priced in. If not, then yes there is an arb.

theoretically yes. hopefully the clearing firm does its job.

Long synthetic = long call/short put In this case Long 32.50 call short 32.50 put. 1.65-.65 = 32.50 - 1.00. So you are "long" gm stock 31.50. You will not be flat stock until your put is assigned on ex-div, when you must cough up .50. The .35 "free lunch" is only if a) your...

GM has been hard to borrow for about 5 weeks. Combination of preffered offerings, hedging credit derivs, stock in down trend, and now a partial tender. Reverse conversion is trading where it should be, out of whack. Also, 7.5 and 10 strike puts out in Jan 2007 been trading like water. Delta...

Actually, the conversion process is a lot more difficult than this. I assume you are referring to a "complete" conversion. Are all of your body parts in working order?:eek:

I just hope that old saying about history repeating itself does not occur in my children's lifetime. That is all that matters to me. As to the one who described this as a "complex", I am sure there are plenty of issues pressing on my plate, but that does not make me psychologically...

The latter Mr. Nitro. Being one the those "ethnic minorities" I happen to have family that is at all levels of the socioeconomic spectrum. In regards to your studies, does it mention that when most of my ancestors were being shut out of traditional jobs because of their religion, they had to...

The fact that I have to reply to something as ridiculous as this makes me want to puke. I suggest you visit a local synagogue this Thursday and hear about what happened the last time a bunch of sociopaths decided Jews were prospering while others were not.

With Sears/Kmart, there were 0 shares to borrow the last week of the deal. I think this one will be a little easier since JANA and Icahn are definately tendering.

Best case scenario looks like this: 30% of shares tendered are worth $92. 70%(what is not accepted ) become new KMG with decreased dividend and higher debt load, high end $73. Implied forward value of KMG stock = 78.70. It looked like conversion trading about 2.50 over. Buy stock...

Lessons learned were expensivo.

Swoop, Correct. It seems that the easy part is having a plan. The difficult part is sticking to it. Self discipline is the key. Mind over matter.

swoop, Thanks for the offer. It seems that I fired my risk manager long ago. If I wasn't a stubborn sob, I would not be in this situation. The truth hurts, but I must move on.

ctrader, sounds good. where do i sign up.

swoop, 10 years of experience did not give me the cushion to cut my losses and ride my winners. Trying to scalp and produce day in and day out small gains was my intended strategy. What happens is the idea that my position is correct and waiting for the market to catch up to it. That only...