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Netflix Shorts Netflixed As Icahn Announces 10% Stake... Using Call Options!
UPDATE: Icahn did NOT purchase shares at all - he mostly bought ITM Calls (he only purchased 500K shares, the rest of the disclosed 5.541MM stake is from call-option equivalents). It would appear someone is trying to make their year in one super-leveraged pump!
Below is the chart of what Icahn actually bought (from the 13D):
And here is what footnote (1) and (2) say:
(1) Represents shares underlying American-style call options purchased by the applicable Reporting Person in the over the counter market. These call options expire on September 4, 2014.
(2) This amount represents the cost of an applicable American-style call option to purchase one Share. The per share exercise price of these call options is $36.05. This exercise price will be adjusted to account for any dividends or other distributions declared by the Issuer prior to exercise of the options.
And that is how you punk the short in a company that is a melting ice cube, and is eventually going out of business, but not before numerous mega short squeezes.
* * *
Thanks to Mr. 'Blockbuster' Icahn, who just announced a 10% stake in the company (for reasons that seem to a pure punt on it being bought out), NFLX is trading up 15% on the day and has filled its Q2 miss gap. He has been building a stake since early September (according to filings) and we suspect was pissed when Q3 earnings stumbled the stock back to below his average fill (allegedly). Of course hundreds of knife-catching hedge funds are thanking the great investor for giving them their exit from Q2 earnings' miss - it seems that you do indeed get a second chance to sell... cue CNBC M&A renaissance chatter...
Unbelievable - Icahn bought calls (not shares):
- (1) Represents shares underlying American-style call options purchased by the applicable Reporting Person in the over the counter market. These call options expire on September 4, 2014.
- (2) This amount represents the cost of an applicable American-style call option to purchase one Share. The per share exercise price of these call options is $36.05. This exercise price will be adjusted to account for any dividends or other distributions declared by the Issuer prior to exercise of the options.
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These people are the epitome of muppets, they deserve everything they will get, make your own investment/trading decisions, if you buy something because a big name buys it then you are a fucking idiot...
Nvm hes probably out of that position already, muppet death imminent
Wall Street is back! Last couple days were boring without these shenanigans. Spooktacular NFLX pump & dump! Happy Halloween everyone'
'shenanigans' is right
no power, no supplies, no transportation to millions of people who are considered a big factor to the American economy
the world as NYers knew it on 10/28/2012 has ended and we're GREEN GREEN GREEN FUCKING GREEN !!!!
no way knowing if this disaster will cost a hundred billion or half a trillion, IF repairs are even an option
BULLSHIT BULLSHIT BULLSHIT
don't pay any attention to it. the true state of America is coming to the surface. washed up like the 100 yr old crud from the sewers of NY.
YAY! Something happened! Look everyone! All is WELL!!
This is nothing compared to Australia, where worse happens daily. We have a whole sector dedicated to a degenerate ramping circle-jerk.
Check out my updated slideshow on the Australian listed investment sector. Features share ramping, asset valuation fraud, ponzi schemes and granny investors getting fleeced:
http://s1144.photobucket.com/albums/o489/_DrBenway/The%20Great%20Australian%20Investment%20Ponzi/
Scams in every corner.
Sandy revealed a bit more about the financial industry than people thought was possible. There's talk about exactly the same subject in Canada right now. The one question is: Do we need federal anything anymore?
What if Netfilx gets a lot more titles from some as yet to be unamed companies?
Vivid?
Sounds like pay-per-spew.
Typical actions for rigged markets as these cocksuckerz make a fast dollar.
(chuckle)
Some needed to cover for Kevin today.
WTF!!!!!!!!!!
It has become clear that the SEC has been told that anything goes as long as it goes up. We should be grateful because by allowing previously illegal market manipulation the Fed saves billions of our dollars in S&P support.
You are absolutely right.
The regulators think their duty is to ensure higher prices, not to ensure fair price discovery.
The regulators think their duty is to ensure 'confidence' in the market, not to ensure a non-manipulated market and let that confidence grow organically
I have one question for any M&A chatter. If no one was willing to buy NFLX at all time lows, why in God's name would they buy it when the stock surges 15%+ just because a loser like Icahn says he had a massive stake in the company (when in actuality, as ZH points out, isn't a stake at all but merely ITM call options)?
NFLX will continue to die a slow death eerily similar to Blockbuster.
About time to load up on some OTM Puts
Netflix just lost even more of it's content from A&E, which was was the only good content it had left after it lost the Starz contract.
It's going down the toilet. The entertainment studios aren't going to let the market decide what their 10+ year old 'intellectual property' is worth.
Netflix still exists? I was not aware of that.
Netflix (NFLX +11.2%) amends its 10-Q to report a 348% Y/Y increase in its International content expenses in Q3, instead of the 14% originally disclosed by the company
Oops.
Carl wants NFLX to become a development studio like Lionsgate. (NFLX recently signed some strong creative talent.) Carl is not realy taking the M&A prospects too seriously.
Could be, since his buddy shut him out of Lionsgate.
Does this [irony] fiduciary [/irony] also charge 2/20 for his coin flips?
I have NFLX the service. Its actually not that bad. Works great on my tivo box as opposed to streaming off my pc. Its worth the $7.99
Not really, the content is horrible.
Another shorting opportunity has been Icahned, Corzined, Dimoned, Blankfined, Stolpered and Muppetized.
So did they halt NFLX when it started to go down? Plunge Protection Team is hard at work.
Ya, he has to make some money back for all the failed attempts over the last 2 yrs.
Think Boone will follow Carl into this POS like he did with YHOO.......?
lol @ cornering the netflix market.
That's Icahn for ya. He's a master at it. Sometimes I think that's all he is.
I suspect he and Donald Trump have some common ancestors.
Icahn apparently also sold puts to pay for his position. I LOL at his comment that he might talk to management soon. And they would listen, why? He has almost no voting shares.