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> Cuban spent $20 million hedging his Yahoo stock with synthetic indexes My understanding is that he used puts. Either way, any derivative strategies he emplo
by trimbo 7y ago
> Cuban spent $20 million hedging his Yahoo stock with synthetic indexes
My understanding is that he used puts.
Either way, any derivative strategies he employed back then almost certainly violates any corporate stock agreement today.
- gvb 7y agoThe point isn't how Cuban hedged his stock holdings, it is that he hedged them and that he would have lost a huge amount of money if he had not. Applying this to the Unity shareholders, their smart move is to sell some of their Unity stock holdings and use the cash from those sales to diversify their portfolio.