Great breakdown, thanks for sharing! Hedging with a long position in Capri is a clever move in this case, and with the court decision so close, this could be an absolute banger if it plays out as expected. Excited to see how it unfolds!
this is a large company and.should be covrered by a lot of analysts. but still, the expected payoff seems too good to be true. i wonder what are some risks that we may have not taken into our calculations.
Uncertainty regarding the trial outcome, timing of the ruling and potential renegotiations to the merger agreement are all important risks to consider.
There is a good probability a deal will go through. However, there’s also a good chance that the price will have to be renegotiated. So that puts your 55 calls in jeopardy.
Great breakdown, thanks for sharing! Hedging with a long position in Capri is a clever move in this case, and with the court decision so close, this could be an absolute banger if it plays out as expected. Excited to see how it unfolds!
Thanks for the kind words! I'm really excited about this opportunity too.
this is a large company and.should be covrered by a lot of analysts. but still, the expected payoff seems too good to be true. i wonder what are some risks that we may have not taken into our calculations.
Uncertainty regarding the trial outcome, timing of the ruling and potential renegotiations to the merger agreement are all important risks to consider.
There is a good probability a deal will go through. However, there’s also a good chance that the price will have to be renegotiated. So that puts your 55 calls in jeopardy.
The likelihood of a renegotiation is possible. However I also own CPRI equity directly to mitigate this risk
I also own CPRI.