Confusion on SNS stock options

Of course the options settle with a stock price of 0. That’s the only fair reflection of the market.

‘Typical gamma long vega short scenario’

what scenario is this?

‘How will the 17% or so that has been sold short be dealt with? Buy-in?’

and expect law suits if that be the case

It’s not like Euronext can just issue SNS “claims” because they feel like doing so. Without any sort of legal basis for a claim, Euronext would be opening up themselves for claims for issuing (potentially) worthless securities. Imagine what the prospectus for such “claims” would look like. Good luck to Euronext if they want to solve such issues withn two weeks. In plain English: that’s not going to happen. In fact, stock trades are due for settlement already by this Tuesday at the latest.

so you are sitting short with partial long hedge and crapping your pants aren’t you?

and you have long hedges against it, you can get badly fucked on both ends, are you still crapping your pants?

don’t worry, reach out for the roll and clean yourself up, this is the easiest decision in the world, you’ll get paid fair value on the puts, you don’t need to start ranting off your stupid little worries on this stupid blog, stop worrying and get some sleep. Worst case is you don’t get paid and then you have to file a law suit, it be good exercise for your tiny little brain

I used to have a mortgage in SNS Reaal

Yeah sure, and Sinterklaas really exists my parents told me so. Where have you been hiding?

SNS stock was hard to borrow, and with a possible emission of new shares every market maker is long stock (with long put and short call). This is a riskless position, the reversal.

When stock is settled at 0, and options at 0.84 ; it would hurt all market makers and maybe putting some out of business.

‘When stock is settled at 0, and options at 0.84 ; it would hurt all market makers and maybe putting some out of business.’

yeah some moron was already crapping his pants last night, pitching his balls out, it ain’t going to happen, you can bet your ass on it

‘Wouldn’t you try to keep your stock position as close as possible to 0?’

People do stupid things, ask them why?

‘They can also answer the question of 6.20 pm’

you are smart enough, so you can answer this, how much was the pnl for glg on this short and how much is the aum for the fund?

No, I’m the guy that was lucky enough to make the last trade ever in SNS by selling a lousy 15K & 10K short in the after closing on Jan 31…

[...] Bescherming kopen Gelukkig kan het ook anders, door bescherming te kopen op de bestaande aandelenportefeuille. Dit kan bijvoorbeeld door hefboomproducten in de vorm van shorts te kopen. Bij een scherpe daling beschermt dit vaak en beperkt zo het verlies, zodra de onderliggende waarde in handen van de staat komt te liggen zou dit een ander verhaal kunnen zijn, maar dat is nog even afwachten (lees hier over de gevolgen voor beleggers in aandelen SNS en voor optiehouders is dit artikel erg interessant). [...]

making big $$$ and webb traders are synonymous.

“AMSTERDAM (Dow Jones)–De waarde van openstaande optiecontracten SNS Reaal (SR.AE) zal worden bepaald op basis van de schadeloossstelling die de rechtbank toekent aan de onteigende aandeelhouders, maakte derivatenbeurs NYSE Liffe dinsdagavond bekend.

Volgens juristen en optiehandelaren komt die waarde waarschijnlijk uit op een paar cent, schrijft het Financieele Dagblad (FD) op zijn website.

Om de afwikkeling mogelijk te maken, verschuift NYSE Liffe, onderdeel van NYSE Euronext, de expiratiedatum van de lopende contracten naar de dag van de rechterlijke uitspraak, die nog wordt bekendgemaakt.

Na de onteigening van de aandelen waren beleggers in verwarring over hoe de optiecontracten moesten worden afgewikkeld. Voor beleggers die speculeerden op een koersdaling van het aandeel SNS Reaal, door middel van put-opties, is de beslissing van Euronext goed nieuws. Als de contracten zouden zijn afgewikkeld tegen de laatste slotkoers van vorige week donderdag, of niet zouden zijn afgewikkeld, zouden zij de verwachte winst mislopen.

Voor professionele beleggers, zoals hedgefondsen, die op een koersdaling van SNS Reaal speculeerden door aandelen te lenen van andere institutionele beleggers, is nog onduidelijk hoe de onteigening uitpakt, schrijft het FD. Deze speculanten kunnen door de onteigening mogelijk niet aan hun leveringsverplichting voldoen. De partij die zulke shortposities afwikkelt, ABN Amro Clearing, noemt de kwestie ‘voer voor juristen’, aldus het FD.

Door Archie van Riemsdijk; Dow Jones Nieuwsdienst, +31-20-5715200 ; amsterdam@dowjones.com

(END) Dow Jones Newswires

“AMSTERDAM (Dow Jones)-The value of outstanding option contracts SNS (SR.AE) will be determined based on the compensation claim that the court assigns to the expropriated shareholders, NYSE Liffe derivatives was announced Tuesday.According to lawyers and option traders that value comes probably from a few cents, writes the Financieel Dagblad (FD) on its website.To settlement permit, shifts NYSE Liffe, a subsidiary of NYSE Euronext, the expiry date of the current contracts to the day of the judgment, which is still being published.After the expropriation of the shares, investors are confused about how the options contracts to be settled. For investors speculating on a fall in the share SNS, through put options, the decision of Euronext good news. If the contracts were settled at the last closing price of last Thursday, or would not have been settled, they would miss the expected profit.For professional investors, such as hedge funds, on a decline of SNS speculated by borrowing shares from other institutional investors, it is still unclear how the expropriation unpack, writes the FD. These speculators can by expropriation may not fulfill their delivery obligations. The party that such short positions settles, ABN Amro Clearing, called the issue “food for lawyers,” said the FD.By Archie van Riemsdijk, Dow Jones Newswires, 31-20-5715200; amsterdam@dowjones.com(END) Dow Jones Newswires

http://fd.nl/beurs/815635-1302/clearing-breekt-handel-sns-open

Hopefully the short was settled already…..