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Buy OTM AMD call options before the deal and then book profit to cover part of the purchases. Or company announces plan to buy Bitcoin, but doesn't actually d
by paulpauper 1y ago
Buy OTM AMD call options before the deal and then book profit to cover part of the purchases.
Or company announces plan to buy Bitcoin, but doesn't actually do so. Buys call options before the announcement. Sells call options after the stock surges and uses proceeds and inflated stock to issue secondary offering to buy the Bitcoin, and buys puts before the secondary offering, also funding the BTC purchase. Stock returns to original price. Net result is free BTC.
There are tons of financial tricks by taking advantage of materially important news and the ability to 'create money out of thin air' by exploiting price swings.