Recent comments in /f/wallstreetbets

IDesireWisdom t1_jegns0m wrote

Prove it. You still haven’t explained anything. You’ve labeled it illogical but haven’t explained how. The burden of proof lies with you.

You don’t have to explain anything, but I have no reason to believe you. In the event someone else is reading this, you’ve offered them no reason to believe you except your dissent.

Prove my argument is illogical.

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IDesireWisdom t1_jegncl4 wrote

If the dollar is going with it then you’ve overvalued the dollar. It doesn’t matter if your puts are profitable if your dollars aren’t worth anything.

I speculate it’s better to put those dollars to use now while they’re worth something. If you’re buying commodities with the dollars you do have that’s one thing, since it’s actual wealth. If that’s not what you’re doing then IMO you should just spend them bc they’re going to be worthless anyway.

The future is uncertain. But what I do know? I’m regarded.

If I don’t translate my money into wealth then yeah I’ll be screwed. But if the dollar is going to zero than I’m screwed hanging on to dollars anyway. So basically I’m screwed!!!!

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grimkhor t1_jegn5rn wrote

Reply to Advice by [deleted]

Your education. Your job will earn multiple millions in your lifetime. If you spend less than you earn and just invest in the stock market that's already enough. You won't get any lambos by investing. Play the lottery if you like the thrill it's cheaper.

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[deleted] t1_jegmxn5 wrote

Looks like me. But listen… how do you guys stay positive about an eventual return to glory? I’ve moved on and dumped my money into dividend rich blue chips

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paulc19802 t1_jegmq6d wrote

Share price after conversion will be (based on values at close):

Conversion price = total market cap ÷ total shares outstanding.

New price = conversion price x 10.

Obviously that completely depends on prices at close on the last trading day before it happens. But if they remain similar I'd expect a conversation price between $2 to $3.

Then the "new" stock to get hammered by dilution following RS.

So yeah those strikes make sense. Can't really argue with that.

I'm currently long preferred shares but I'll be getting out of dodge before it actually converts.

I'd be careful with Puts though especially shorter dated expiries. Don't underestimate people's stupidity to fomo buy after the RS.

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aka0007 t1_jegmiye wrote

The only risk here is if conversion takes longer than 4/28 to occur. The court can delay it or even if they allow it, it may take the company a few days to have it go through.

As the share price of AMC is affected by the liquidity constraint on the sell side, until conversion (when that constraint will go away), there is no good reason to assume the share price will decline that much.

FYI... I think the share price will fall to well under $1 ($10 post-split).

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