Someone is buying a huge upside stake ! I'm in, this price can't stay down here much longer, with or with out gco, stock value at 100 million, when the co has 400 million in net equity! Wall street is crazy. Good luck all
They bought 25433 May calls at $2.50 strike and 25,433 May calls at a $5.00 strike..so if my math is right 1 call =100 shares so 25,433 X 100 = 2,543,300 shares represented or around 5% of outstanding. agian if my math is right, the purchase for both was around $1.7 million.
Now the question is why...to protect a killing already made on a short sale or betting on a rise to at least $4ish between now and May.
It is a big purchase as long as it not some kind of error.
No it is correct, they didn't buy 50,000 calls but instead put on a call spread of 25,000 calls cost 950,000. The purchaser stands to make 5.3 million if the stock closes at 5 or above by the 3rd friday of may. He will also break even if the stock closes at 2.90. Risk reward looks good to me. There is no way we will stay this low that long.