Originally published January 17, 2019 Did you ever play Dungeons & Dragons? Raise your hands geeks. I admit I played quite a bit in college. I spent one long 3 day weekend playing almost non-stop. Not a proud moment. If you have played the game you’ll remember there was a “disbelieve” option whenever a character […]
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“Are you SURE the exercise price is $3.00?” I asked. Reply: “Yes” “Are you SURE they are exercisable?” I asked. Reply: “Yes” “Do you understand that I’m buying the warrant for $4.00 and selling the common for $7.50, meaning I’m making $.50 on every share? Any idea why I can do that?” I asked. Reply: […]
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I’ve written extensively about SPACs (Special Purpose Acquisition Companies) and SPAC warrants. One of the most important aspects of a SPAC is that if the SPAC doesn’t “do a deal” investors receive their investment back. So if you own common stock shares of a SPAC you basically are taking on no risk. If you look […]
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When I worked as a market maker on Wall Street we were always seeking an edge. As a market maker you have a built in edge, you see customer orders before anyone else. But for the ambitious on the trading desk, that one edge alone wasn’t enough. You can have more than one edge… To […]
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Most investors have a long only strategy across their portfolio. They believe shorting and trading options is for the pros. With all the information available on options and shorting, that’s simply not the case. Having some portion of your portfolio tied to a short hedged investment (which I’ve written about often) should be a part […]
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