Exactly. Do you think Leu would be quite if FXCM was in violation of the agreement. They would have made a stink to high heaven. FXCM found a loophole and has enough buyback remaining to purchase the entire float.
GOOD TILL CANCELED
When you place an order....there are several "time in force" options. They are typically a day order and GTC. There are typically some options for extended hours too.
I am not certain that placing a GTC order prevents share from being borrowed to short sellers. This may be an old wall street urban legend.
fundamentals solely based on a fire sale of FXCM and proceeds flowing to LUC. No analysis supports $5 valuation in a scenario where FXCM continues as a going concern.
@ 70% of the announced amount, FXCM can purchase the entire float at $20 a share.
If FXCM has already purchased approx. 65M...assuming the recent high of $24 a share, it is feasible they have already purchased 2.7 million shares
At $15 a share, that's 4.3 million shares.
This is getting weird. Could FXCM be taking themselves private or nearly private through an announced buyback? Wonder how that impacts FXCM's leverage with LUK. Could Niv be a genius?
Sentiment: Strong Buy
Someone set me straight
FXCM announced $150 m share buyback
Only 5.3 million shares outstanding
With $150 million, couldn't FXCM buy the entire float at these prices?
15 dec short position was only about 500 k. Hard to imagine there are shorts left....I guess a bunch of new positions are being opened and closed
don't understand how you could be trapped in a short position. To cover will cost you 20.75 a share. That's not trapped
they are all non-standard options. Each option strike must be multiplied by 10 and the deliverable is 10 shares not 100.
For example, Jan 1.0 call @ .9 should be interpreted as 10.00 strike at $9 cost. Breakeven would be $19
Executing a single contract would cost $100 to own the shares. However, at $9 a share (90 per contract) the real upside is in owning the option. If this moves to $25, the option position would gain over 70%.
I hope this helps. If you have a specific option in mind...post it here and I will comment.
FXCM options are only 10 shares instead of normal 100.
One can by Jan 2016 10 Call (listed as 1.0 call) with a break even of about 19.
10 Contracts will cost $900 for the option to purchase 100 shares at 10.00
If this goes from current price of $19 to $25 that is a 31% gain. These options purchases for $900 per 10 contract block will be worth $1600 for a 77% gain.
Someone check my math ;)
PS Najarian is always about the options. I will be looking for large options blocks.
this should be a 10 dollar stock. Between the tax benefits, cash generation, dividend, and improving pricing power heading into 2016. This is a no brainer
Can someone explain the inner workings of the 2x tracking. The VIX is up 17% and TVIX is only up about 8.5%. Presumably a perfectly tracking 2x index would be up 34% today correct? Meaning TVIX is underperforming by about $1.5 currently. Can someone explain what type if any adjustments are done to keep the TVIX close to tracking 2x VIX?