7 Comments

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!

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author

Thanks for the kind words! I'm really excited about this opportunity too.

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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.

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author

Uncertainty regarding the trial outcome, timing of the ruling and potential renegotiations to the merger agreement are all important risks to consider.

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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.

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author

The likelihood of a renegotiation is possible. However I also own CPRI equity directly to mitigate this risk

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Sep 10Liked by Under The Radars

I also own CPRI.

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