🅰️ PeeLoosy

Hawk Tuah girl, aka Haliey Welch, is facing backlash after she started a memecoin and lost everyone money. The token hit $500M before crashing below $60M in just 20 minutes 👀

$ASTS Here's my stab at explaining Abel's latest transaction. - He's holding 78M shares worth $1.9 Billion dollars. He hasn't sold (or hedged) any shares to date. It's time to have a small guarantee in place just in case everything goes haywire. More importantly and more likely, this transaction gives him ~40m of cash liquidity to spend on his life. He hasn't taken a salary in years. - He has essentially sold a 14-month $34.20 call option on 2.5M of his 78M shares, and simultaneously bought a 1-year $18.24 put option on his shares. (The exact details aren't provided so there may be multiple strikes and slightly different dates). - There's a lot of legal language about how he retains ownership of the all his shares, and voting rights, etc. But honestly the cleanest way to look at this is a clever way to sell ~2M shares of stock with some tax deferals and some upside/downside exposure. If any shareholder (or non shareholder) thinks this is suspicious, they're insane. - The bank/counterparty likely needs to sell ~2M shares (this is actually a short position that they will report) to hedge against the 2M shares they just bought from Abel (contractually obligated to take from Abel a year from now). - The 2M share hedge was probably executed today (or maybe yesterday and today). I think it's pretty weird/risky of them not to have it done before publicly announcing the news of the deal. That's probably the negative price action we saw today. - Kudos to Abel for doing this AFTER a large portion of the ATM sales have been executed. He's essentially "competing with the company" to sell shares and he's making sure the company is getting the higher prices first. Abel looking after the company before himself is consistent with his previous actions. The deal is probably roughly cash-neutral, Abel is selling higher priced calls and buying lower priced puts, but the difference is probably the profit margin for the counterparty, after considering slippage, borrow costs, etc. If someone structures these things at a bank and wants to DM me with more details, I'd love to hear it :)