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bantrader

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    Manual of Ideas Top Ten Interviews

    in General Discussion

    Posted

     

    We are avid readers of Corner of Berkshire and Fairfax.  Please suggest additional fund managers you would like to see interviewed.  Cheers!

     

    Kevin Byun from Denali Investors

     

    Sahm Adrangi from Kerrisdale Capital

     

    Jesus Dominguez & Luís De Blas from Valentum (Spain)

     

    Álvaro Guzman from Az Valor (Spain)

     

     

     

     

    Adjustments in Ebay's options after spinoff.

    in General Discussion

    Posted

    I asked to the OCC (Options Clearing Corporation) about the adjustments in spinoff case , and here we go with the answer from them:

     

    Dear Iban,

     

    Thank you for your interest in options and for your inquiry.

    There are a few sources you may want to review that discuss spinoffs.

    One simple example is provided in Chapter III  of  Characteristics and Risks of Standardized Options on pages 20-21: http://www.theocc.com/about/publications/character-risks.jsp

    We also offer a free online course on Contract Adjustments that discusses the treatment of spinoffs:

    http://education.optionseducation.org/course/view.php?id=5

    Registration is required to access the courses, but the registration is also free.

     

    If there was a contract adjustment to the Ebay options, OCC would publish a memo to its site.

    http://www.theocc.com/

     

    Finally, contract adjustments are covered in depth in Article VI, Sections 11 & 11A of OCC’s By-Laws.

    http://www.theocc.com/components/docs/legal/rules_and_bylaws/occ_bylaws.pdf

    Until such time as a memo may be released, this is all the information we can provide.

     

    Regards,

    Adjustments in Ebay's options after spinoff.

    in General Discussion

    Posted

    Is there any expert in the community who knows what kind of  adjustments will be made on Ebay options after the PayPal's spinoff?

     

    For example, what would be the setting for holders Call option Ebay strike:70 expiration: January 2017 ?

     

    I understand that would be as follows:

     

    Pre Spinoff: Long Ebay Calls strike 70 January 2017

     

    Post Spinoff: Long Ebay Calls strike ? January 2017 + Long Paypal Calls strike ? January 2017

     

    The question is: How does it be calculated the new strike price of both options?

     

    Thanks in advance,

     

    Think of the strike as what you have the option to pay to get the deliverable  (usually 100 shares of the stock).  So, pre-spinoff, by owning 1 contract of the $70 strike calls you have the option to pay $7000 (there's a 100 multiplier) to buy 100 shares of EBAY.

    If EBAY spins off 1 share of PAYPAL for each share of EBAY, the deliverable of the options contract will be adjusted to represent 100 shares of EBAY  -plus-  100 shares of PAYPAL.  So, you would have the option to pay $7000 to purchase 100 shares of EBAY and 100 shares of PAYPAL.

     

    Within a day or so, they will then list a new series of options contracts that will just represent 100 shares of EBAY.  At this point, if a person wanted to buy options on just pure (post spinoff) EBAY they would be able to do so.  But the old series of options sticks around, so there will likely exist two EBAY $70 2017 calls  - the old ones (100 EBAY + 100 PAYPAL) and the new ones (100 EBAY).  It will be important to make sure you are trading the right ones if you want to do new trades.

     

     

    Thank you both for your contributions.

     

    I guess the OCC (Options Clearing Corporation) to set the strike for the Ebay's new options will be taken into account:

     

    - or the opening trading price of the shares of Ebay as independent entity (after split).

    - or the closing price of the first day as a independent Ebay.

     

    I will consult with the OCC to see if I can still clarify a little bit more this things.

     

    I'll keep you informed,

     

    By the way, according to your nick (pocoapoco) I think you're from a Spanish-speaking country. Is that so? I'm from Spain.

     

     

     

    Adjustments in Ebay's options after spinoff.

    in General Discussion

    Posted

    Is there any expert in the community who knows what kind of  adjustments will be made on Ebay options after the PayPal's spinoff?

     

    For example, what would be the setting for holders Call option Ebay strike:70 expiration: January 2017 ?

     

    I understand that would be as follows:

     

    Pre Spinoff: Long Ebay Calls strike 70 January 2017

     

    Post Spinoff: Long Ebay Calls strike ? January 2017 + Long Paypal Calls strike ? January 2017

     

    The question is: How does it be calculated the new strike price of both options?

     

    Thanks in advance,

    Swiss Company - Bergbahnen Engelberg-Truebsee-Titlis AG

    in General Discussion

    Posted

    Reading David Waters' blog (OtcAdventures.com) I found this post about the Swiss Company Bergbahnen Engelberg-Truebsee-Titlis AG (Bloomberg ticker: TIBN:SW) , and I would like to dig in financial statements of the company.

     

    Link to the write up: http://goo.gl/FYUiSC

     

    Anyone know what's the Swiss equivalent to the SEC in order to get info about financial statements from Swiss companies?

     

    Thanks in advance,

    Credit Default Swap

    in General Discussion

    Posted

    Anybody knows if is it possible  to buy a CDS (credit default swap) for a retail investor?

     

    I'm thinking to buy a CDS in order to hedge some investments in Russia or to speculate about a possible default by countries like Russia and Venezuela.

     

    Please let me know If anyone knows if is it possible and where can i buy it.

    Spinoffs

    in General Discussion

    Posted

    Here the link to the interview on the CBS newsletter, It's worth spending five minutes reading:

     

    http://www8.gsb.columbia.edu/valueinvesting/sites/valueinvesting/files/Graham%20%26%20Doddsville%20-%20Issue%2021%20-%20Spring%202014.pdf

     

    By the way 2 questions for RhubarbXIV:

     

    Are you subscribed from long time ago to the Bill Mitchell's newsletter?

     

    Have you taken some interesting investment ideas from the newsletter?

     

    Thanks in advance,

     

    I've subscribed to Bill Mitchell's newsletter for a few years. I've invested in some things that have been featured, but not necessarily because of it. Not to be snobby about idea sourcing, but to highlight that he and I tend to look at situations a similar way (so to me he seems really smart). In each issue there's always a list of upcoming and announced spins so you can do your own valuation to keep up to speed. He also does good work with spins internationally, which won't necessarily show up in SEC Form 10 searches.

     

    Thanks for the info RhubarbXIV,

     

    For now I seek spinoff updates through www.spinoffmonitor.com,

     

    Surely Bill's servicio is deeper with some analysis,

     

    Maybe I will join the Bill's newsletter for try it,

     

    Thanks again,

     

    Spinoffs

    in General Discussion

    Posted

    Here the link to the interview on the CBS newsletter, It's worth spending five minutes reading:

     

    http://www8.gsb.columbia.edu/valueinvesting/sites/valueinvesting/files/Graham%20%26%20Doddsville%20-%20Issue%2021%20-%20Spring%202014.pdf

     

    By the way 2 questions for RhubarbXIV:

     

    Are you subscribed from long time ago to the Bill Mitchell's newsletter?

     

    Have you taken some interesting investment ideas from the newsletter?

     

    Thanks in advance,

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