NeilN With other hybrids, my plan is to short the equity just during VWAP days so that when the times comes to sell the equity resultant from exchange, the price is hedged. As you can imagine, as the exchanged stock hits the broker accounts, all noteholders will be looking to sell on the same day which would trash the price.
However, with TIM, I am genuinely bearish the stock and have a position now. I am currently short 75% TIM versus my TIMPB notes and am looking to increase the short if and when TIM rallies (like today); The TIMPB notes are not responding so this is a good day to sell TIM and buy TIMPB.
My current payout profile is positive between TIM=15 cents and TIM=1.92 with max return of 88% at TIM=50 cents.
I have no prolems sharing this strategy with HC users because, the more I speak to people, I realise that most people cannot understand what I am doing nor could they be bothered with what they pereceive as a complex way to make money. In short, HC users won't in general be bothered with this slow and structured way to make a return.
TIM Price at posting:
78.5¢ Sentiment: LT Buy Disclosure: Held
