UBS selling call options!!! premium $3, (pay now) strike price $17.25 (pay when you make he call / demand the shares), expiry date 30 JUNE 2020 only, (European) It is a great way for UBS to make money. They get your $3 now. Then when you make the call, they just buy them in the market, at market price. Which means you don't bother with the admin of calling UBS you just buy them in the market. Because the price will be $17.25, which UBS predicted? [Net effect is you give UBS $3 then go away]
UBS have 'insurance' in that they held 1.1M shares in a market where the shares were trading at ~$35, so they down ramped and tried to push the market down to ~$17 because, rule of law, transparency, efficient market hypothesis.
Except this is not actually happening because UBS are not, it seems, 100% confident in their own forecast. Yes this is a complex, and massive, sarcastic p**s take of UBS. I always admired Brandon Abbot's honesty. https://en.wikipedia.org/wiki/Brenden_Abbott
DYOR
APT Price at posting:
$29.01 Sentiment: Buy Disclosure: Held
