Capitalizing On Volatility In Recent Spin-Offs

Capitalizing On Volatility In Recent Spin-Offs Volatility is always high for recent spin-offs. You can take advantage of that by "selling volatility" in the options market. First, let's step back and cover how options are priced. Here's Joel Greenblatt: In general, professionals and academics calculate an option’s “correct” or theoretical price by first measuring the [...]

By |2022-04-07T15:45:02-04:00April 7th, 2022|Categories: Special Situations Playbook, Spin-off Market|Tags: |1 Comment

How to Short a Spin-off Before It Begins Trading

How to Short a Spin-off Before It Begins Trading I love spin-offs (shocker, I know). The main reason is that the indiscriminate selling pressure associated with spin-offs allows me to buy bargains. Why do spin-offs sell off when they begin trading? Seth Klarman of the Baupost Group explains why this dynamic exists in Margin [...]

By |2021-10-06T17:43:19-04:00October 6th, 2021|Categories: Educational|Tags: , , , , |1 Comment

Spin-off Links – October 2021

Spin-off Links - October 2021 Before we get into this month’s spin-off news I just wanted to highlight that I will be raising prices on my premium newsletter at the end of the month (October 31 at midnight). The annual subscription will increase by 51% from $419/year to $635/year. The monthly subscription will increase by [...]

By |2021-10-06T12:10:11-04:00October 6th, 2021|Categories: Uncategorized|Tags: , , , , , , |0 Comments
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