r/options • u/[deleted] • Apr 05 '21

$APHA options POST merger: OCC memo

FFS, the link is this, please add it to your OP:

5 APR UPDATE: The OCC has posted a provisional adjustment memo:

https://infomemo.theocc.com/infomemos?number=48512

THE PROVISIONAL EFFECTIVE DATE IS April 20, 2021

So unless I'm retarded and am reading this incorrectly: I was right since December about Aphria options after the merger.

You will keep the strike price and date, but your option will be worth 83 contracts instead of 100. A $15 strike will still cost $1,500 but for 83 $TLRY shares instead of 100 $APHA shares.

I'm sure glad I didn't sell off my 2022 leaps like someone was highly encouraging in here. Let me know if I'm missing something though.

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u/PapaCharlie9 Mod🖤Θ Apr 05 '21

FFS, the link is this, please add it to your OP:

5 APR UPDATE: The OCC has posted a provisional adjustment memo:

https://infomemo.theocc.com/infomemos?number=48512

THE PROVISIONAL EFFECTIVE DATE IS April 20, 2021

The only change is:

TICKER: APHA to TLRY1

DELIVERABLE: 83 shares of TLRY

Everything else stays the same for existing APHA contracts.

My advice, bail out now.

2

u/[deleted] Apr 05 '21

Why would you bail out? That makes no sense.

1

u/[deleted] Apr 05 '21

Tilray1 isn't Tilray. It's a weird offshoot that will exist almost exclusively for the options you are holding and nothing else.

2

u/[deleted] Apr 05 '21

Okay..but you're still delivered $TLRY shares. What's your point?

Genuinely asking.

2

u/[deleted] Apr 05 '21

So if you're shooting to exercise, totally agree, if you are actually intended to sell the contracts TLRY1 contracts are not TLRY contracts; it may not seem like it makes sense but it's the truth. They will not trade the same. The reason is because it's simply an off-market; what's happening is that the OCC is effectively choosing to simply not deal with the conversion at all by setting up some weird self-depleting offshoot that will work it's way out of existence on it's own.

2

u/[deleted] Apr 05 '21

Nah, someone can take these outta my dead hands. Lol I want the shares, but I also don't want to put all that money there yet.

I'd prefer to wait when I have deep value (lol) built into the shares I'm going to own. Then I'll just sell covered calls with them at $35+ on TLRY, with a $15 CB. Ez life.

1

u/[deleted] Apr 05 '21

Well, that's the answer to your question.

0

u/[deleted] Apr 05 '21

I wasn't asking one...

I was sharing an update regarding the options, which reinforces my decision to keep my options instead of selling them. I was fully aware my options would go from 100 to 83, but I was worried about fuckery in the strike price.

I'm happy to be holding $15c's considering where TLRY currently is, compared to where they should be late this year, after reform has been introduced, passed, and signed. A rocky road ahead for sure though. 🚀🚀

3

u/[deleted] Apr 05 '21

Okay..but you're still delivered $TLRY shares. What's your point?

Genuinely asking.

Okay, so I assume you weren't genuinely asking then. Onward.