5 Comments

Why would Ackman be concerned with call holders? I don't think a company owes any fiduciary duty to the interests of listed options owners as these are just deriviatives. I've certainly never seen their interests cited before.

Expand full comment

At the moment, I would accept PSTH merger with almost ANY company. Why would any company want to merge with this fiasco? Companies that he wants to take a minority shareholder stake will just direct list or IPO traditionally... Excellent management team? They can't even read the rulebook in the SEC?

Expand full comment

What is the exercise price of the tontine warrant? That is the warrant to buy PSTH after a target is announced, right? Why do you say it is "attached" to the shares given only shareholders got the shares from IPO have it, and not me buying PSTH right now? Thanks in advance for answering.

Expand full comment

2/9th warrants still attached to units…so yes buy today and you still get those the ones trading now are the initial 1/9th

Expand full comment

One curiosity was that the implied volatility of PSTH options has been completely crushed for the rest of the year. Historically, PSTH has hovered between 35-100% IV (often higher than Tesla, as you have noted yourself). PSTH is down to roughly 15% IV for the next few months, which makes it much harder to profit from selling calls on the underlying.

Expand full comment