Several readers have asked me to walk them through exactly how a percentage, or delta, hedge works in a real life example. So, here we go. Over the next several weeks I’ll be doing a percentage hedge in Bank of America (BAC) common stock and the Bank of America Class A Warrants (BACWSA). I’ll […]
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A few people have been asking about my trading career, where I learned to trade, what I’ve traded, etc. Here is an article I wrote for another website that details my first day on the job, and gives a little insight into a Wall Street trading desk. Throughout my trading career I’ve tried to take […]
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I saw the movie Captain Phillips this weekend with my son. A very intense and well done movie. I don’t think it gives anything away, (but, spoiler alert, if you don’t know how it ends and don’t want to then don’t read this) but at the end of the movie three SEAL snipers dispatch three […]
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Often a rights offering can be traded in the same way you would trade a warrant expiration. As long as the rights are publicly traded, arbitrage between the common and the rights will result in downward pressure on the common stock. While there is usually little profit for the average investor in the arbitrage, you […]
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