It is already down to 58 from yesterday close at 72 how much will the short sellers make if it opens at 58$ in half hour?
So if they open at 6.54$ and 1.25$ respectively the short seller (hindenberg) potential gains from sq block short via short term puts are
6.54-2.54 = 4x100 = 400$ per contract 1.25-.25 = 1*100 =100$ per contract
If they had bought 1000 contracts of each that is 400k and 100k respectively for the 72$ and 60$ sq put!!
The 60 puts are 3.25$ hence gain is 300$ per contract
Assuming hindenburg bought a 1000 of each 1100000 on the 72 puts and 300000 on the 60 puts as Sq block is now trading at 58$ much to jacks chagrin
That's a cool 1.4 mn $
Is this legal if so why isn't everyone doing it?!