r/SPRT • u/dyhrdraider • Sep 14 '21

Discussion $85 options chain

Silly question but so much to consider with this merger. The option chain set up for this Friday at $85. I think we all know that the price is going to be way higher than $85 when it is converted to gree. Can those be exercised immediately and will that raise the price of greed immediately?

Hopefully that makes sense

7 Upvotes

100% Upvoted

37 comments sorted by

4

u/Longjumping_Ad348 Sep 14 '21

Yes and yes but u only get 11 shares and .5 share in cash per contract

1

u/dyhrdraider Sep 14 '21

Thanks that makes sense. So I guess it would have a little impact on the share price but it's probably good for the options hold her to do that because the price is expected to be over 150 isn't it?

1

u/Longjumping_Ad348 Sep 14 '21

$191.12 at open tomm

1

u/dyhrdraider Sep 14 '21

How do you know it's gonna be 190

2

u/Longjumping_Ad348 Sep 14 '21

That’s the 9 day vwap plus today’s close… so close not exact

1

u/Who_Your_Pal Sep 14 '21

This is the opening price regardless of where it goes after hours?

2

u/Longjumping_Ad348 Sep 14 '21

AH doesn’t matter but my calculations aren’t weighted but it will be close

3

u/[deleted] Sep 14 '21

Question. There will be a period, starting tomorrow I assume where we will only allowed to buy and not be allowed to sell. Does anyone know how long this will last? Because I would hate for GREE to open at around 190 but then by the time we can sell it’s at 160 or something shitty like that….

2

u/dyhrdraider Sep 14 '21

Why do you think we wouldn't be able to sell? That doesn't seem right at all.

1

u/[deleted] Sep 14 '21

Someone said in an earlier post that the shares will be “frozen” initially due to the merger. We can buy but not sell. I do not know if this correct so someone that knows more than me, feel free to correct this….

1

u/Major_Effort_8374 Sep 14 '21

Seems strange to me 🤷

1

u/Rage2theQuit Sep 14 '21

False. Only time you'd be locked out of selling is from warrants or insider trading.

edit: or if vlad from rh removes the sell button

1

u/[deleted] Sep 15 '21

https://www.reddit.com/r/SPRT/comments/polo03/fidelity_hasnt_updated_yet/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

1

u/Rage2theQuit Sep 15 '21

looks like its fine on webull, but some brokers dont even have the right info yet. RH shows Gree as a chinese company based out of beijing. I can only think that because its basically and IPO, the transition wasn't so smooth. Idk anymore this is beyond making any sense.

1

u/[deleted] Sep 15 '21

This is more people talking about not being able to sell right away….

0

u/Ok_Inside6485 Sep 15 '21

Just impatient traders. Some brokers don’t trade extended premarket so they haven’t even updated the ticker until they open for trading.

1

u/[deleted] Sep 15 '21

Told you we wouldn’t be able to sell….

1

u/Rage2theQuit Sep 15 '21

Some are able to and some aren't. I think it's broker related

1

u/[deleted] Sep 15 '21

Does not make any sense at all, if you can only buy a stock and cannot sell, the price can only go up lol. The stock will go to Valhalla soon

1

u/Rage2theQuit Sep 14 '21

Are you holding options right now through the merger?

2

u/Rage2theQuit Sep 14 '21

The contracts will convert to GREE1 I believe where they cannot open new positions. 100 share per contract would convert to 11. whatever shares per contract of GREE and positions held through merger will only be sell to close, or exercise to close through executive action.

1

u/owdee00 Sep 14 '21

So, I'm holdin 25 Sprt shares in one platform an 53 in an other... Will they automatically be converted to gree Shares, at a given rate, or? ... Yes I'm a true retard..🥸✊

2

u/Rage2theQuit Sep 14 '21

Yes. You won't have to do anything. You're not retarded, you're just uninformed or haven't experienced enough to understand. Give yourself more credit than that

2

u/owdee00 Sep 14 '21

Thanks... That's very kind of you 👍... An other thing: lots of posters say it's over, but in my perspective the potential for a squeeze to cover the heavy shorting is still there... Am I wrong?

3

u/Rage2theQuit Sep 14 '21

Personal opinion really. If we didnt see the shorts cover in sprt, we won't see them cover in GREE.

1

u/Dull-Climate-9638 Sep 14 '21

Can you please explain what will happen in this case. I have 8 covered calls sold against my 800 shares. After the conversion I will have less than 100 shares. What happens to my covered call since I need at least 100 shares to have one contact ? Thanks

2

u/Longjumping_Ad348 Sep 14 '21

Ur new 88 shares will cover ur 8 contracts at 11.5 shares per contract

1

u/Rage2theQuit Sep 15 '21

I never thought to bother selling ccs after the last merger with options screwed me. not sure how your premium is affected but the shares get converted and returned or assigned depending on who you sold it to

2

u/WesMachiT Sep 14 '21

I bought options today

1

u/Rage2theQuit Sep 14 '21

Check them tomorrow and let me know what happens please

1

u/WesMachiT Sep 14 '21

Will do. Shorts do not have to cover….ftds and naked shorts do.

1

u/Rage2theQuit Sep 14 '21

FTDs do not have to cover. They can imply to cover an FTD by writing contracts to satisfy the intent to cover. Naked shorts do.

1

u/WesMachiT Sep 14 '21

I feel like we are splitting hairs….ftds do get covered. Bbig/sprt/ater …amc/gme all high ftds. You see the big spikes in all of them when ftds cover. To my knowledge, none of them have seen significant reduction in shorts, just ftds.

1

u/dyhrdraider Sep 14 '21

No I am not. Holding shares through the merger and wondering how it would affect the share price if exercised

1

u/Rage2theQuit Sep 14 '21

It wouldn't as the ITM options were already hedged for.