4 ms·

Inspired by Matt Levine's awesome reporting on the Elon/Twitter purchase fiasco. Just a little app to model the arbitrage (gamble) opportunity.

• metadat 4y ago
  Do you have a link to the ML reporting?
  • hrrsn 4y ago
    https://www.bloomberg.com/opinion/authors/ARbTQlRLRjE/matthew-s-levine https://www.bloomberg.com/opinion/authors/ARbTQlRLRjE/matthe...
• orlp 4y ago
  > Just a little app to model the arbitrage (gamble) opportunity. This isn't arbitrage at all. That is taking advantage of a price difference of an asset between two markets by buying and reselling it (nearly) simultaneously. If you are holding the asset longer than strictly necessary it isn't (only) arbitrage. Your intended action is just timing the market: buying stocks based on the belief they will soon rise in price.
  • rckrd 4y ago
    This is a classic merger arbitrage spread. [0] https://en.wikipedia.org/wiki/Risk_arbitrage https://en.wikipedia.org/wiki/Risk_arbitrage
    • shkkmo 4y ago
      How do you short "Elon Musk" stock? You can only short companies the acquirer owns, not the acquirer himself, so this does not count as "merger arbitrage" under the definition you linked.
      • tedunangst 4y ago
        This is a cash merger. You buy TWTR stock.
        • shkkmo 4y ago
          • tedunangst 4y ago
            I have edited nothing.
            • shkkmo 4y ago
              You edited your comment to change the link.
          • robocat 4y ago
            > ninja edited The Wikipedia article says “Last edited 1 year ago by GreenC bot”. Making serious accusations is extremely bad behaviour - at least check your facts.
            • shkkmo 4y ago
              The comment was edited after I responded to it. I made no claims about the wikipedia article though I see how the 'it' in not clear.
  • jdsully 4y ago
    It doesn’t need to be simultaneous, just be very low risk. Usually simultaneous execution is a factor in having low risk though, but some deals take longer. An example is Bill Gates buying DOS from SCP. The deal making wasn’t instant but he still bought it for a certain profit as he had the contract with IBM.
  • deleted 4y ago
    [deleted]
  • vpribish 4y ago
    the world of arbitrage calls this arbitrage. there are other, more pure, arbitrages - but this is very mainstream one. you are buying the stock at the market price, while you think it will be worth the offer price - there's a risk that it blows up. risk arbitrage. (not to be confused with garbitrage)
  • mhh__ 4y ago
    Arbitrage is practically just a cooler way of saying making clever money the nerdier the trader is.
• robinsta 4y ago
  Frankly, I’m disappointed I can’t pick prices that end in $X4.20!
  • angry-tempest 4y ago
    Or $X.69! OP, do you even Matt bro?
  • jreese 4y ago
    $42.69/share is just sitting there, patiently waiting.
  • yqsk 4y ago
    Lol