seems to me you will be long 30 shares after covering your short. Basically a reverse stock dividend.
These apparent discrepancies are becoming more common. After NFI went ex-div - $1.40 - the front-month calls went down by around $1.10, and the front-month puts increased by a small amount. This is according to the people in the Yahoo msg boards who were kind of pissed; I don't have access to historical option prices to double-check. I did look up the description of the option contracts that day, and they did not include a cash component.
The corporate actions dept and brokers where you pay all those commissions, should be able to give you a straight answer on this. Why the mystery? Certainly no one should trade this stuff without a full understanding of hte implications.
31% of tendered shares. I gues theres some SMALL chance you could be short shares that were not tendered, but I have no idea how that's determined. It must be impossible to tell in advance, else you could game it. There may be considerable time where you do not know if you a liable for the $85 tender, thus how do you hedge? You notice those options got normalized fast enough.
This is the interesting question. If the buyer of my 100 shares does not tender, does that automatically mean my short 100 shares benefit exclusively? Or do all short shares have to pay the tender on some percentage basis, regardless if the counterparty tendered specific shares or not? (I.e., the percentage changes because of people who don't tender - you can't get a windfall profit by being short.) I guess I will know in a few weeks.
Nothing has happened in my account as of yet. I am not sure when the $85 tender gets put in people's accounts.
It has been about 2 weeks since I shorted and no corporate transactions have shown up in my account. Looking at the Yahoo message boards, I saw the following: http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7082705&tid=kmg&sid=7082705&mid=3678 http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7082705&tid=kmg&sid=7082705&mid=3679 http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7082705&tid=kmg&sid=7082705&mid=3680 Since some people have received their cash and shares post-tender already, doesn't it seem like I should have been notified of a corporate transaction in my account?
Maybe you got lucky. This whole thing is way too mysterious. Call the corp actions dept of your broker and demand answers.