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Teavana Holdings, Inc. Message Board

  • notasap Dec 4, 2012 4:53 PM Flag

    News for all you put sellers

    get ready to accept lots of stock, for which you will pay $5 more than they are trading. at

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    • Any hint why, sbux is presenting tomorrow at a conference. You think they give up the ghost !!!

      • 1 Reply to paam7219
      • Tomorrow is SBUX bi-annual analyst day. You can listen in via a link on the SBUX website. The TEA deal is sure to be discussed and when SBUX makes it clear the purchase is going to happen, this game ends. The stock will immediately go to near 15.50 and stay there.

        Some Options may be assigned.....

        I Expect the deal to be done mid-December. SBUX has the cash, the votes and the Feds all in.

        There is such a small float in TEA, 70% is held by vote due to the sale, 6% held by Harvard, which bought in AFTER the sale (to negotiate their own price per the proxy) to make some easy money. Oh and Harvard grads are on the BOD of TEA.... Harvard will make 1% (in a month) at the offer. If they get another .50 out of SBUX, they can make 4%. WIN/WIN proposition.

        BYW, There isn't enough float left to assign, and the small float is why the stock is moving all over the place. There are only about 10 million shares in play (functionally a fraction of that), with 1 million being traded daily now (which is probably 50% of what’s really in play) and 17 million with options, about 12 million on puts (WOW).... This is ALL months,

        A stock can't be assigned unless it is in the money, and if you did spreads as I did, (I did Bull Put Spreads) assignment only reduces the risk and increases my profit by eliminating the time decay for my leg. By looking at the options charts most folks have naked $15 calls out there, hard to tell with the puts but looks like many are spreads - at the 12.50/15 level.

        Now, it's very interesting that the $15 calls are all naked (seller is covered, yes my assumption) and the premium is trading as if the acquisition will occur (front month is .30). Even with the price closing today at 14.40... If you look at the stock action it is sold heavily (volume) for short periods of time and crawls upward 95% of the time. This sure looks like someone got caught in a bad way on the short side and is selling Puts like a madman to cover a huge short position.

        As a poster did note - it is possible if my assumption is true - the put seller - (now covered), can have the put assigned - when the put is in the money. If you have put spreads you are good. If your puts are naked - you are a pig.

        The moral of the story - Bears make money, Bulls make money and Pigs get .....

    • i thot you were one of those puts sellers. Unless you were blowing smoke, didn't you take in $400k of put premium?