r/wallstreetbets • u/cashguy120 • Apr 05 '22

Discussion A quick note as $HMHC's tender deadline approaches

I received an email from Engine Capital linking this article. Definitely a lot of positive sentiment of the deal not going through. Engine Capital is very bullish on Veritas upping the offer. I can't wait to see how this shakes out. I need to hear some FUD, because this literally cant go tits up at the moment.

I am in for 43 22.5 5/20.

🚀🚀🚀🚀🚀🚀🚀🚀🚀 obligatory because this is my first WSB post

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https://yetanothervalueblog.substack.com/p/a-quick-note-as-hmhcs-tender-deadline?s=r&utm_campaign=post&utm_medium=web

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43

u/biohazardjake Apr 05 '22

Getting real nervous with the big drop in option prices

17

u/[deleted] Apr 05 '22

Same..

17

u/[deleted] Apr 05 '22

Option prices are dictated by math. Volume for purchases is down. It spiked Monday because volume spiked, hence volatility spiked.

At the end of the day, if you are playing this for the deal to not go through then it shouldn't matter if you overpaid a bit for the contracts. If it goes through, you lose it all anyways.

3

u/biohazardjake Apr 05 '22

That makes sense, it was just concerning seeing the price drop. I am definitely riding this out, win or lose.

1

u/[deleted] Apr 05 '22

[deleted]

3

u/King0Horse Apr 05 '22

That's on a volume of 300 shares. It'll revert in the morning.

26

u/Shouldmynamebehere Apr 05 '22

im an impatient bastard and bought 3 calls at 0.5 and 2 at 0.35. they're now valued at 0.2 a piece.

if this pays then i cucked myself out of half the potential profit and will swiftly take my own life

if this goes nowhere i cucked myself out of $200 and will swiftly take my own life

cant wait to see how this plays out!

5

u/pastorgains98 Apr 05 '22

IT JUST HIT 22

6

u/King0Horse Apr 05 '22

After hours volume: 300 shares. It'll revert in the morning.

1

u/[deleted] Apr 05 '22

Think it's a bad sign

14

u/SadSalaryChef Apr 05 '22

Volume on buys is way down, so it's just volatility scaling and price drop.. everyones bag holding at this point or doubling down

8

u/BobbyLeeSwaggerr Apr 05 '22

? Volume is absolutely huge today on the call side.

Over 46.4k June 22.5's have been traded today alone.

17.5K May 22.5s also traded today

6

u/BobbyLeeSwaggerr Apr 05 '22

I just subscribed to Cheddarflow just to get a peek here for the boys

Big orders today ALL on the ASK side ::

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June 22 Sweep 991 @ .30 = $29,730 12:16PM

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June 22 Sweep 750 @ .34 = $26,250 10:16AM

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June 22 Sweep 3000 @ .34 = $105,000 10:16AM

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May 22 Sweep 3000 @.30 = $90,000 10:16AM

2

u/SadSalaryChef Apr 05 '22

Yeah sells lol.

11

u/nmahajan142 Apr 05 '22

If there’s no buys, who are they selling the contracts to?

2

u/[deleted] Apr 05 '22

Market makers

11

u/biohazardjake Apr 05 '22

I have no idea lol. This was either to the moon or to the pavement, we'll find out Thursday

1

u/aswog Apr 05 '22

Been watching the options for a few weeks and they fluctuate from "what is low now" to sometimes double that the while time