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/biz/ - Business & Finance

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>> No.22291205 [View]
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22291205

>>22290927
>In short, while SoftBank may have made a 100% profit, unless it somehow unwinds this trade asap, it risks losing not only all of its gains but also suffer material losses that would eat into the option premium and would then also hammer the value of its underlying stock investments.
I've been wondering about this myself. That Softbank was part of all the options activity was obviously leaked from someone inside Softbank, and presumably leaked by someone who was unhappy with the hedgefund-subsidiary taking capital from the venture capital projects or whatever. But I can't imagine someone from inside would leak it until they get the cash out, at least from their calls?

Regardless I'm going to buy some more SFTBY this afternoon I think. Whenever they make headlines people overreact. The gap between the value of their assets and market cap is going to jump bigtime because of all of this (especially if they actually make billions on the actual deal in question), and I bet Eliott Management is going to want more of their fresh cash (from selling the telecom subsidiary) spent on a buyback because of it.

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