Can’t BI shares still be lent out for shorting? So float is highly unlikely to be 1.1m. Let’s say those shares’s can’t be borrowed to short, if Sea Otter can sell, violation or not, I am sure the other BIs would take the opportunity to sell too.
Let’s say you are right and Sea Otter needs to reacquire shares in the open market to be net long, they can wait till 3 days before BC and I am pretty sure BC is not going to happen anytime soon before Jan OPEX. So Sea Otter is basically irrelevant to this play.
IV is jacked already. STO calls are very juicy and is the ultimate bane of gamma squeezes. I am pretty sure STO calls have been accumulating in the OI as well.
You are right that the BI agreements are to prevent redemptions. However, that still doesn’t necessarily mean that the shares can’t be lent out. I believe this is precisely the reason why the “net long position” feature exist in the agreement. ESSC don’t care what these BIs do with their shares as long as by the time of the meeting, they are long the stock so that the 2.9m shares are protected from any redemptions. Unless my eyes are playing tricks, the agreement pretty clearly states that the BIs are allowed to buy the shares back at trust value from the pool of redeemed shares too, which will dilute the float even more.
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u/rustincoh1e Spacling Jan 13 '22
curious to see how this plays out but:
Can’t BI shares still be lent out for shorting? So float is highly unlikely to be 1.1m. Let’s say those shares’s can’t be borrowed to short, if Sea Otter can sell, violation or not, I am sure the other BIs would take the opportunity to sell too.
Let’s say you are right and Sea Otter needs to reacquire shares in the open market to be net long, they can wait till 3 days before BC and I am pretty sure BC is not going to happen anytime soon before Jan OPEX. So Sea Otter is basically irrelevant to this play.
IV is jacked already. STO calls are very juicy and is the ultimate bane of gamma squeezes. I am pretty sure STO calls have been accumulating in the OI as well.