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How much can he get out from this? any way to hedge his exposure to this until lockup expires?
by megadethz 8y ago
How much can he get out from this? any way to hedge his exposure to this until lockup expires?
- winslow 8y agoCould do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding [1]. [1] https://www.quora.com/How-did-Mark-Cuban-save-his-wealth-from-the-dot-com-crash-He-sold-Broadcast-com-for-5-7-billion-in-Yahoo-stock-How-did-he-get-out-before-it-all-went-down https://www.quora.com/How-did-Mark-Cuban-save-his-wealth-fro...
- LanceH 8y agoIt's not shorting if you're holding, it's just and option.
- nostromo 8y agoPeople use “short” as a synonym for holding a put option all the time.
- notyourday 8y agoBeing a long on in the money PUT is called synthetic short.
- rhapsodic 8y ago>Could do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding [1]. I interpreted that article to mean that he shorted the sector (Internet) that his holding (Yahoo) was part of, but without appreciably shorting his actual holding. (less than 5% of the fund he shorted.) Had the Internet sector (and therefore the fund) went up while Yahoo went down, he could have lost from both directions.
- tw1010 8y agoWhy would he want to get out of it?
- kyleblarson 8y agoHe could collar his position. https://www.investopedia.com/terms/c/collar.asp https://www.investopedia.com/terms/c/collar.asp