LFIN and "shorting to zero"

Discussion in 'Stocks' started by m22au, Apr 20, 2018.

  1. m22au

    m22au

    New memo

    https://www.theocc.com/webapps/infomemos

    42935 (April 20) LONGFIN CORPORATION – BROKER-TO-BROKER SETTLEMENT/EXERCISE CONSIDERATIONS/REMOVAL FROM EX BY EX
    OPTION SYMBOL: LFIN
    * * * UPDATE * * *

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    #11     Apr 21, 2018
  2. m22au

    m22au

    New Reddit thread:

    "Saturday Thread: 4/20 LFIN Options Postmortem Check-in - What Did Brokers Allow?"

    https://www dot reddit.com/r/LongFinOptions/comments/8dvdn5/saturday_thread_420_lfin_options_postmortem/

    Interesting to see a wide range of responses from the various brokers. On one hand there are brokers who would not allow exercise of puts that would create (or increase) a short position. On the other hand there are brokers who not only allowed exercise, but said that there would not be any borrow fees if they could arrange for a deferred (presumably to take place once the stock begins trading again) settlement.

    Robinhood customers are particularly unhappy, and some May/June/September put holders are planning to move their accounts to brokers with more customer-friendly policies.

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    #12     Apr 22, 2018
  3. zdreg

    zdreg

    It is a hard lesson in life. it is not unusual that the most expensive things in life that somebody gives to you for free are the most expensive, as at Robin Hood. it is called the art of the con.
     
    #13     Apr 22, 2018
    Zr1Trader likes this.
  4. vanzandt

    vanzandt

    If one is holding an open position with Robinhood, be it the puts or a straight up short position.... what I would do is open another account at a brokerage that is more accommodating and then simply transfer the position to that account. Problem solved. (I think.. lol)
     
    #14     Apr 22, 2018
  5. Sig

    Sig

    Good point, although keep in mind that the losing broker seems to be able to drag their heels on position transfers. Back in the day ETrade took weeks and weeks on my one and only attempt at a position transfers, so I haven't tried it since. Better than a sharp stick in the eye though, which is what Robinhood appears to be providing. I guess you do get what you pay for!
     
    #15     Apr 22, 2018
  6. zdreg

    zdreg

    maybe, but the ones that expired last Friday and were not exercised will obviously be subjected to litigation.
     
    Last edited: Apr 22, 2018
    #16     Apr 22, 2018
  7. m22au

    m22au

    Here is the (now finished) Ask Me Anything with Rich Gates:

    https://www dot reddit.com/r/investing/comments/8dwvv4/planned_ama_for_this_weekend_rich_gates_tfs/

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    #17     Apr 23, 2018
  8. m22au

    m22au

    "Longfin Corp. Announces Intention to Voluntarily Delist from NASDAQ"
    https://globenewswire.com/news-rele...ention-to-Voluntarily-Delist-from-NASDAQ.html
    May 03, 2018 17:00 ET | Source: LongFin Corp

    * Intends to file form 25 on or about May 14
    * delisting becomes effective 10 days later (May 24)
    * May options expire on May 18

    https://finance.yahoo.com/quotes/lfin/view/v1

    LFIN filed 10-Q (for quarter ended September 30, 2017) on Friday May 4 at 14:27:07
    https://www.sec.gov/Archives/edgar/data/1699683/000149315218006238/0001493152-18-006238-index.htm

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    #18     May 6, 2018