• Special Situations and Arbs
    $TWGP Put on a covered combination. Bought stock at 2.66, sold the 3 call for 15 cents and sold the 3 put for 50 cents. Cost basis:$2.50.5
    2/7/14
    Reply (9)
    • jaginger: SS&A, aren't you double long the stock if you own it and sold the put?
      2/7/14
    • Squeeky Wheel: He's double long if it drops under 2.5 (ok, double long at under 3, but from 2.5-3 it's at a profit).
      2/7/14
    • Squeeky Wheel: Personally I think it's riskier than that. I'm considering writing a short article. I like the 3 call idea!
      2/7/14
    • jaginger: looking forward to the article, SW. pondering a long on $TWGP, so i want to hear the short side! Can you give me the 140 character version?
      2/7/14
    • Squeeky Wheel: TWGP is a mess; lots of complicated conditions pre-merge; so higher than usual chance of fail. Probably goes through, but < 90%
      2/7/14
    • jaginger: and final result of failed merger is bankruptcy? or not that dramatic
      2/7/14
    • Squeeky Wheel: Failed merger means run-down and liquidation. Value = 0.
      2/7/14
    • Special Situations and Arbs: I exited this position in $TWGP a few weeks ago. I made a decent gain and thought there were better arb opportunites (less AR though).
      4/16/14
    • Special Situations and Arbs: $TWGP Vote a day away. market seems to be saying it will pass. (no position)
      8/5/14