Nowhere in his description (of Ackman's projectile-diarrhea R/R synth short) does it mention that he has risk to the puts, other than stating that he's short puts. The graph is a joke. He also states that Nomura needed to buy stock, well no shit, they're sitting on short synthetic shares. No way that Nomura lost a dime.
Hedge Fund Losses From Epic Valeant Rout Estimated at $5.3B
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Nowhere in his description (of Ackman's projectile-diarrhea R/R synth short) does it mention that he has risk to the puts, other than stating that he's short puts. The graph is a joke. He also states that Nomura needed to buy stock, well no shit, they're sitting on short synthetic shares. No way that Nomura lost a dime.
Yeah, sure, he's just plotting the usual PNL at expiry graph...
At any rate, this stuff, frankly, boggles the mind.
I think it was understood as a proxy for long stock. Levine is a competent journalist.
Nomura must have killed it. prob made the edg desks year.
I disagree (Levine). The puts aren't mentioned in terms of risk. He refers only to the upside calls. Makes zero sense.
Levine aside, one other curious bit, which may or may not be interesting, is Pershing selling a chunk of Mondelez ($834mm proceeds). Now call me a cynic, but I have a sneaky suspicion that it's not all in preparation for possible upcoming redemptions.
why do you think the graph is a joke?
They're quoting him on CNBC now... "We don't use margin leverage." What does that even mean?
We don't wear short shorts... he's leveraged to gamma. It's analogous to stating that he's not leveraged when shorting a six dollar put in SPX.