I thought that they're supposed to send out mailing asking whether we want to sell the share or not. It is supposed to be in the next 10 days after they made the announcement which is last Friday. I have 1000+ shares and I haven't received anything yet.
Peanuts, $17.00 to exercise the options, $29.87 to sell 6200 shares. $46.87 total. That is right around what I would have paid to sell the options if I could have.
The only difference is you have to pick up the phone, you cannot exercise electronicly. A very small inconvienence.
Thanks for sharing your adventures with these Calls. I appreciate your candid answers, they help me with understanding exercising. I always try selling a deep-in-the-money position but I know that sometimes I can get more if I exercise instead. After all, as an option buyer, it's my right to do so.
One last question...were you charged a commission only for exercising or also for selling at market?
Congratulations on the huge win! Now, go forth and buy some gold or kill some debt.
It did not quite work out the way I had hoped, but still very good.
4/18/2011 Bought 62 SPWRA May 16 calls at .62. $3844.00.
5/20/2011 Exercised the 62 options $99,200 and sold at the market $21.17 $131,254.00. Net proceeds = $32054.
Total capital gain $28210 8.33 times my money minus a few dollars in commissions. Not as good as I could have done a couple of weeks back the day after the tender, but still the best trade from a percentage point of view of my life.
If I could do this three times a year I would quit working
Here's also my prediction. As more people slowly turning in their share, there will be less share to sell. In the last week, you'll see the pps to be closer to the tendering price because of shorts are forced to cover. We're still 2 weeks away. New buyer will be rewarded too.
In reply to:
"Is it a good idea to buy more SPWRA, tender all shares, get a $2.00 profit guaranteed on the number of shares TOTAL buys and then see the non bought shares revert to market price whatever that will be?"
YES! I like your idea. I agree with it! I would do it in a heartbeat if I had anything left to invest.
As you say, the risk is: what is the market price of shares NOT purchased by Total after completion of the tender?
The worst case scenario could be that so few shares are tendered that Total can not buy 50%.... in which case my understanding is the deal would be off. In such case one would end up still owning all his shares at a market price likely to be depressed. I do not think that to be likely.
My guess is that between 75% to 85% of shares will be tendered... resulting in about 70% to 80% of a tendering shareholder's shares being purchased by Total. Leaving that shareholder with ownership of 15% to 25% of his shares.
And if you like the longer term prospects of SPWRA, then that is just fine.
You are both absolutely right. Conceptually, I new that but I did not put it well. But I was right in concept just did knot put it right. Total will buy a total 60% of the companky so it depends on how many shares are totally tendered,not eavch individual tender that matters contrary to what the guy I was respondingto articulated. But you are right, if only 60% are tendered, the amount bought will be well over 60% of the individual tendered shares. The limkit would only be 60% if 100% were tendered. And that brings me to an intersting concept which depends on one constant and one variable.
Is it a good idea to buy more SPWRA, tender all shares, get a $2.00 profit guarnateed on the number of shares TOTAL buys and then see the non bought shares revert to market price whatever that will be. I'm seriously considering excercising that concept, expecting the share price to settle in at 18 or 19 per share. In fact I did buy another 500 shares at 21.15, guaranteeing me more than a $2 profit on what total will accept and then hope the market pricce on the non bought shares will be sufficient to give me a profit or at least be attractive as I do have long term faith in the company. I had at 16 pre total and now have more post total.
what thinks you guys of this concept and thanks for the correction as I now expect more than 60% of my shares to be bought. In fact my guess is as follows: 80% or more tendered, about 70% of my shares bought and the price settling down to 18 or 19 making buying at a little over 21 per share a good deal.
We ahall see. Meanwhile it will be interstign to see if ESLR survives and I wish someone could explain why my battery stocks, ABAT and AONE are doing so poorly, besides of course the short attack on ABAT.
Again thanks for the correction, I need to think more before I open my mouth although intellectually I did know the correct answer, and will appreciate your thoughts on my contemplated action;.