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  • 2 weeks later...
Posted

Purchase more SPY puts at a strike of 110.

 

Now I have LEAP strikes ranging from 185 all the way down to 110. Obviously, there's more money in the nearer-to-the-money options, but will roll down if markets go through a big decline. Just would be odd to have bets at 140 and 110 without really profiting if it hit anything before that.

 

Also, pretty much maxed out on straight shorts and puts that I'll allow myself to hold, so also sold some of my energy exposure and rolled it into ZROZ (25+ year zero coupon bonds). At this point, I'm probably done with my bearish positioning and will play "wait and see" until things start moving dramatically for or against me.

 

 

 

 

  • 3 weeks later...
Posted

I've been buying as much KAHL as I can get. Opportunity of the year imho.

 

If my numbers are right, it's trading for cash component and none of the MTY consideration?

Posted

Haven't looked at KAHL, but it's a collection of pretty bad restaurant chains, no?

 

Looks like they're in the process of a merger.

Posted

I've been buying as much KAHL as I can get. Opportunity of the year imho.

 

If my numbers are right, it's trading for cash component and none of the MTY consideration?

 

Whether you get cash or cash + stock is irrelevant, package value will be the same. Check out the proxy. The price is to be adjusted for working capital but MTY is up quite a bit since they announced the merger. Deal should be worth around $159 now. Stock is up quite a bit now but IRR is still great. Prices last week were insane. This is my largest position now. Unfortunately I missed the opportunity of a lifetime: buying at $10 a few months ago.

Posted

Prices last week were in the $130 range?  I guess I'm failing to see what makes you think this was the opportunity of the year?

 

Low risk merger, earn ~20% in 2 or 3 months? I like it. Each to his own I guess.

  • 3 weeks later...

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