rjp

Repurchasing TARP Warrants: Why Jamie Dimon Is Right

88.4MM warrants with a strike price of $42.42 that someone estimated were worth $20.20 in late April versus $35 stock - at a 54 vol they were worth that, but today with vol at 39 versus $42, they are worth $21.25 – and 39 vol is still historically too high. JP Morgan can posture all it wants but it knows its stock volatility will normalize over time and that this will work in its favor (and a return to it’s former 38¢ quarterly dividend knocks another $6 off off the warrant’s value). Because of the length of the term left to the options, over 9 years, JP Morgan knows the warrants won’t be exercised for years and will just be traded as an individual issue. This isn't JP Morgan being an Enron, it's JP Morgan wanting to keep the premium it got for these warrant (options). Can you blame them? The only thing I don't like is hearing it reported as if it was some altruistic act.

Taxpayers Will Benefit from JPMorgan's Exit from TARP

88.4MM warrants with a strike price of $42.42 that someone estimated were worth $20.20 in late April versus $35 stock - at a 54 vol they were worth that, but today with vol at 39 versus $42, they are worth $21.25 – and 39 vol is still historically too high. JP Morgan Chase can posture all it wants but it knows its stock volatility will normalize over time and that this will work in its favor (and a return to it’s former 38¢ quarterly dividend knocks another $6 off off the warrant’s value). Because of the length of the term left to the options, over 9 years, JP Morgan Chase knows the warrants won’t be exercised for years and will just be traded as an individual issue.

Amazon/eBay, Yahoo/Google: Internet Trading Pairs With Good Potential

I thought you were nuts when you +EBAY/-AMZN'ed and forwarded it to a co-worker who knew I loved
the other side of your spread. How's it doing today? I still believe in +YHOO/-GOOG too. Want the other
side?