matthew2129

Agreed Option 2 is better than Option 1. Bill originally said he was just going to give PSTH holders the right to buy PSTH 2 @ NAV, so this SPAR instrument is far superior. But the SPAR is still much less valuable than owning a 5 year ATM option or warrant since it evaporates upon the initial business combination is all I'm saying

An option that can only be exercised before you ever see the price in the underlying needs to be severely discounted imo. If TSLA was IPO'ing tomorrow at $500/share I probably wouldn't pay a single cent for the right to buy into that IPO b/c i wouldn't think TSLA would trade above $500/share. If I can see TSLA is already trading at $610/share, however, I would happily pay $100 for a call option to buy TSLA at $500/share

Yea maybe something in the ballpark of $1.50-2.50 fair value. I'll keep it on my watch list as I suspect it's the type of instrument that could easily fall to sub 50 cents at the first sign of the slightest market distress

Yea I agree, this is precisely the issue

I agree that the $20 strike price is more favorable than $23, but the tenor is much worse than you suggest. The current warrants were supposed to be outstanding for 3-4 years post-merger, while the SPARs will expire the EARLIER of (i) 5 years and (ii) the initial business combination. Separately, I don't think the current warrants are a fair starting point--PSTH warrants traded 2-3x times more expensive than typical spac warrants (even after adjusting for PSTH's $20 NAV instead of $10 NAV) on the assumption that Bill would source a highly-hyped target. That didn't happen. The Remainco warrants and SPARs will reflect expectations/premium more in-line with the market. If you look at Softbank warrants for instance (which are more expensive than most), they are trading at about $1.50 (and lower-tier sponsors have warrants trading under 75 cents).

Where do people estimate the SPARs will trade? Considering they have to be exercised at the initial business combination (before you have any transparency as to where the underlying stock will trade) I think they must be significantly less valuable than options/warrants. I can't imagine more than a $1 or so but I really have no idea

It's looking like buying commons and selling OTM leaps might be the play here. The LEAPS are still trading with IV of ~50% for a basket of 3 uncorrelated components. Once the OTM leaps are converted to special contracts I'd be surprised if there's even a bid

Are you sure FFH is subject to BB's blackout period? I thought blackout periods were just voluntarily imposed by a company on its directors and employees to avoid insider trading violations (as opposed to being imposed by security law)? If FFH had MNPI they would obviously need to cleanse themselves before trading but I'm not sure that FFH is technically subject to BB's blanket blackout period otherwise.

Wow 300M shares of volume if Prem doesn't capitalize on this I'll never forgive him

Praise be the investment Gods they have not forsaken us

BB up another 14% in after hours after being up 15% today. I hope at the very least FFH starts selling boatloads of covered calls tomorrow while the volumes pumping

WSB getting back on board the BB hype train. FFH might have a second bite at the apple at unloading this pos above $15 w/ no selling restrictions this time around

Any hope of us getting out of the BB commons any time soon? Prem is always reaming on FANG for their high P/E's, but BB hasn't had positive earnings in years and makes FANG look like a basket of dirt cheap deep value stocks

Does anyone happen to know whether if you exercise call options you defer 100% of the taxes until you sell the underlying?

Ackman interview with the WSJ today suggesting incoming announcement of taking an "iconic" durable growth company public. SPACs are generally snake-oil/dead-money at this point, but all signs point to Ackman striking gold with a Bloomberg IPO on this one.