$RIDE - 1:15 Split
Nothing much to say here.
The situation with RIDE is the same as before. Foxconn decided to break their contract and not buy NASDAQ:RIDE at the price of $1.70 as previously agreed since the price of the stock had declined to $0.30. It seems the cost of business of just breaking contract was better for them than to actually go ahead and buy NASDAQ:RIDE shares for said price.
Lordstown / NASDAQ:RIDE had to finally implement a reverse split in order to bring their stock price back into compliance with Nasdaq's rules where a stock cannot be below the value of $1.00 for an extended amount of time. By reverse splitting, the price of the stock should go somewhere around $3.80.
OCC Memo:
-Lordstown Motors Corporation (RIDE) has announced a 1-for-15 reverse stock split. As a result of the reverse stock split, each RIDE Class A Common Share will be converted into the right to receive approximately 0.066667 (New) Lordstown Motors Corporation Class A Common Shares. The reverse stock split will become effective before the market open on May 24, 2023. Cash will be paid in lieu of fractional shares.
New Cusip: 54405Q209
Deliverables for Call/Put writers:
-The RIDE component of the RIDE1 deliverable will settle through National Securities Clearing Corporation(NSCC). OCC will delay settlement of the cash portion of the RIDE1 deliverable until the cash in lieu of fractional RIDE Shares is determined. Upon determination of the cash in lieu amount, OCC will require Put exercisers and Call assignees to deliver the appropriate cash amount.
TLDR if you wrote calls or puts, you're gonna have to have some cash in your account to deliver upon your new liabilities. I sold 1000 puts so i have something to pay here.
Technicals:
-The big wedge is coming to an end. Let's see what happens.
Fundamentals:
-Product is great, financials & backing are not great.
My opinion:
-The company is in a difficult place and has a higher chance of not making it than actually making it which is why the risk payoff on a possible reversal on this is extremely high. The risk of loss of your investment is also very high.
My positions:
-1000 calls, 1000 puts at the $0.50 strike with plans to sell that much more post split in the new chain.
What you should do:
-Probably nothing. The EV sector is a difficult place to invest in right now. You do you.
The situation with RIDE is the same as before. Foxconn decided to break their contract and not buy NASDAQ:RIDE at the price of $1.70 as previously agreed since the price of the stock had declined to $0.30. It seems the cost of business of just breaking contract was better for them than to actually go ahead and buy NASDAQ:RIDE shares for said price.
Lordstown / NASDAQ:RIDE had to finally implement a reverse split in order to bring their stock price back into compliance with Nasdaq's rules where a stock cannot be below the value of $1.00 for an extended amount of time. By reverse splitting, the price of the stock should go somewhere around $3.80.
OCC Memo:
-Lordstown Motors Corporation (RIDE) has announced a 1-for-15 reverse stock split. As a result of the reverse stock split, each RIDE Class A Common Share will be converted into the right to receive approximately 0.066667 (New) Lordstown Motors Corporation Class A Common Shares. The reverse stock split will become effective before the market open on May 24, 2023. Cash will be paid in lieu of fractional shares.
New Cusip: 54405Q209
Deliverables for Call/Put writers:
-The RIDE component of the RIDE1 deliverable will settle through National Securities Clearing Corporation(NSCC). OCC will delay settlement of the cash portion of the RIDE1 deliverable until the cash in lieu of fractional RIDE Shares is determined. Upon determination of the cash in lieu amount, OCC will require Put exercisers and Call assignees to deliver the appropriate cash amount.
TLDR if you wrote calls or puts, you're gonna have to have some cash in your account to deliver upon your new liabilities. I sold 1000 puts so i have something to pay here.
Technicals:
-The big wedge is coming to an end. Let's see what happens.
Fundamentals:
-Product is great, financials & backing are not great.
My opinion:
-The company is in a difficult place and has a higher chance of not making it than actually making it which is why the risk payoff on a possible reversal on this is extremely high. The risk of loss of your investment is also very high.
My positions:
-1000 calls, 1000 puts at the $0.50 strike with plans to sell that much more post split in the new chain.
What you should do:
-Probably nothing. The EV sector is a difficult place to invest in right now. You do you.
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