why is no one paying attention to HMHC here? via /r/wallstreetbets #stocks #wallstreetbets #investing


why is no one paying attention to HMHC here?

A few days ago there was a post highlighting the Veritas buyout of HMHC at $21 per share. Here is that post: https://www.reddit.com/r/wallstreetbets/comments/tk3prl/hmhc_do_not_tender_your_shares_and_buy_otm_calls/?utm_medium=android_app&utm_source=share

This post only got 50 upvotes and seems like nobody here really read it. I took a dive deeper into it and it’s clear that this is probably the safest and most insane play of the month.

I’m making this post short because none of you guys have attention spans:

You can buy shares at around $21 right now and guarantee you’d sell them for the same price if the deal goes through, so there is no risk. If the deal doesn’t go through and enough institutions refuse to tender their shares (which is what’s happening) you may get to freely sell your shares to veritas at a higher price such as 24$ or 28$ if they re-offer.

Now for the slightly riskier play but with huge upsides: If you buy may/June calls right now for $22.50 strike price they sit at about 30 cents a piece due to the low volatility of this stock. If veritas re-offer at $24 these will immediately 10x. It’s a stupidly simple play with little risk given the $21 safety net.

I have 60 calls for may/June 22.5$, i may triple that.

TL;DR buy HMHC $22.50 June calls.

Submitted March 25, 2022 at 11:26PM by luew2
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