*He* sells $1B OTC R/R

think that this collar would be covering all his holdings, or only those he plans to sell near term? imagine the outcome in 6mos. if the stock sits at $25, what does he do with puts at $30 on his own stock. what does the market say? heck, i'd "like" that move. "i thought it'd be the $50 instead."

options this week, or next? straight to weeklies as well? opening IV? think the volume will be there?
 
the CA resident FBers will be wanting to cash out some of their shares before the year end for tax reasons.

perhaps this is his smooth exit, i wonder how many others are laying the same plans for their shares (of course, they don't hold as much as he does, but they are still acting en masse. "i didn't sell them, they were taken!"
 
Quote from babutime:

Buffett?

Well kingy asked me to look at the stock price... and the only thing around $30 with significant chatter is JPM... hence my guess Dimon...

Wow this conversation really sieves out the professionals from the amateurs...

:p
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Facebook.
 
I had a small deal that I was an angel investor for go public 5-6 years ago. I was held up in a lock-up for six months after the IPO itself.

I don't really remember the details of the lock-up, but I assume that applies to FB'ers. If that's the case... boy, people must be disappointed over there, considering FB was already trading in the secondary market at $30+ a year ago.
 
Quote from heech:

I had a small deal that I was an angel investor for go public 5-6 years ago. I was held up in a lock-up for six months after the IPO itself.

I don't really remember the details of the lock-up, but I assume that applies to FB'ers. If that's the case... boy, people must be disappointed over there, considering FB was already trading in the secondary market at $30+ a year ago.
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was in the 40's just a few months ago. Even the pre ipo suckers got BAGGED. had to be that way, too much hype, too goofy a ceo, too many morons living on FB

nice for the very early buyers, but ponzis are always like that
 
Quote from atticus:

A $30/$50 risk-reversal against his holdings, 6mo duration is what I am hearing. $1B notional.
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Sounds odd. $50 strike can't be worth anything on that tenor, so he's just buying $30 strike puts. Are you sure you got the right strikes or the tenors? Plus, I can't see anyone sane on the street doing a collar like this on such a short tenor.
 
Quote from sle:

Sounds odd. $50 strike can't be worth anything on that tenor, so he's just buying $30 strike puts. Are you sure you got the right strikes or the tenors? Plus, I can't see anyone sane on the street doing a collar like this on such a short tenor.
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Can't be sure, but it was apparently based upon the opening print of listed trading. Opened at $40 and change. I heard 6 mo from one of your competitors, and nobody is on the record here. Typical terms of 1-5Y I suppose. One of my in-laws did an OTC R/R on a $100MM notional position in A*GX at <1Y with BSC many years back.
 
hey , tus, bet you were able to buy all u wanted at 38 the next day . you stepped right in front of all those big bad 'stutions.


y'ever notice these guys have all kinds of info, but never anything you can make 2 cents with? I've noticed that.
 
.... but, but,... mark said that billion or so he cashed out selling 30 mil shares on the IPO was to cover taxes.

he's also said to be exercising 60 mil shares to make up for that loss, to maintain his controlling interest, a transaction that which will also be taxable come year end. most of his wealth will be solely FB, after taxes.

would he have hedged himself out of that controlling stake down the road? or only that part of his position which would pay the bills in the future, but still let him keep his 'special' baby to himself? ... or is it the greatest golden parachute ever created? (flip enough shares to cover the collar on the remainder, then get back to life.)

at least now he's married to a doctor, smart man, now they have a good stable income to fall back on in the lean times between jobs,...


-pfl
 
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