Ann: Disclosure of Equity Derivative Positions, page-33

Pretty sure others have explain it well as to what happened and especially about what the hedge positions entitle. (my view of hedging is the definition below... the meaning has been loss with people associating it with the term "betting" so I want you to understand what I mean when I say "hedge".)

_{Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset.}

benladeng414 basically hit my interpretation of the scenario.

But more important about the bank's themselves risk managing the transaction. There are three financial institutions in picture right now; Morgan Stanley, Merrill Lynch, Bank of America. The bank sector is known for promissory notes (basically IOUs) so there will definitely be some movement perhaps even tapping shorters.

Merrill Lynch has been linked with Goldman's Sach downwards pressure on lithium from previous notices where it stated they have been the borrows of their dark pool.

I also think there potentially (should be) another party for is associated with Bank of America's trade. Who is just nothing being mentioned openly...

The derivative market is not transparent and assumption as retail is the best we can get. We just get prices ranges in the end and that really all we get nothing about which direction just the the risk management BEOT is willing to take.