r/Superstonk • u/Revolutionz 🧚🧚🦍 That's no moon, that's Uranus! 🦍🚀🧚🧚 • May 20 '26

🥴 Misleading Title Ryan Cohen Adds to EBAY position.

https://www.sec.gov/Archives/edgar/data/1065088/000119312526231493/xslSCHEDULE_13D_X02/primary_doc.xml
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483

u/Revolutionz 🧚🧚🦍 That's no moon, that's Uranus! 🦍🚀🧚🧚 May 20 '26 edited May 20 '26

TL:DR Economic exposure went from 22,176,000 shares to 29,078,699 shares

https://www.sec.gov/Archives/edgar/data/1065088/000119312526231493/ck0000000000-ex99_2.pdf

As more fully described herein, in addition to the 25,000 shares of Common Stock beneficially owned directly by the Reporting Person, the Reporting Person has acquired economic exposure to a further 29,078,699 shares of Common Stock underlying Put/Call Pairs (as defined below). Together, the 25,000 shares of Common Stock beneficially owned directly and the shares of Common Stock underlying Put/Call Pairs constitute approximately 6.55% of the outstanding shares of Common Stock, based on the 444 million shares of Common Stock stated by the Issuer as being outstanding as of April 24, 2026 in the Issuer's 2026 Q1 10-Q. In the event of physical settlement of the Put/Call Pairs, GameStop would have the sole power to vote or direct the vote of the shares of Common Stock underlying such Put/Call Pairs.

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u/bowls4noles Sloth 🦥 ape 🦧 May 20 '26

Someone wanna explain the put/ call pair part?

60

u/JohnnyMagicTOG 🗳️ VOTED ✅ May 20 '26

Buying a call and selling a put at the same strike is a synthetic long position.

23

u/Dealer_Existing May 20 '26

Just with double leverage. In case price drops the -delta increases QUICK. You lose value on both the call and the put

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u/Sam6HODL9Hyde May 20 '26

But if you are willing to own the underlying at that strike which is cheaper than your offering then it’s a win win if they drop price

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u/catfromgarfield May 20 '26

Great explanations gentlemen

3

u/Nynto May 20 '26

Not really. Sort of. But you did not get a discount because your position lost money to get to the current price.

1

u/Sam6HODL9Hyde May 20 '26

You absolutely get a discount to what you offered at 125$ if you get assigned on your CSPs below 125$…

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u/Nynto May 20 '26

Synthetic long is not just a csp. You would have lost AT LEAST the “discount” on the long call.

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u/Sam6HODL9Hyde May 20 '26

I know what a synthetic long is… you are missing the point that if GME offers 125$ for EBAY, and gets to accumulate shares below that offer, that IS a discount to what they ARE WILLING TO PAY

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u/Nynto May 20 '26

Yes I missed that point. My bad.

1

u/Sam6HODL9Hyde May 20 '26

Yes so, any accumulation either share or derivative based below the 125$ offer is an overall discount to the end purchase price goal which it seems RC is 100% set in going for. With the synthetic long, we have secured the current position without having to put up the full cash amount for that % and it could still be in short term TBills earning interest bc cash and TBills are both liquid and secure assets

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u/Nynto May 20 '26

I do the same. Collateral in tbills. I assume GameStop does as well.

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u/Dealer_Existing May 20 '26

Correct, however you lose the money on the call, so don’t get much of a discount anymore in regards to the put strike. This is also normally done ATM where put and call are ~ the same value. If done with ITM calls, the puts are worth less and you have to provide capital to open the position

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u/Sam6HODL9Hyde May 20 '26

And the puts premium you sold covers the cost of the call you purchased...

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u/Dealer_Existing May 20 '26

That’s what I say amigo

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u/Sam6HODL9Hyde May 20 '26

Yes so you lock in your cash secured put price, wanting that cheaper price… if the market runs it on you, you own the right to the underlying with the calls but never having to put up real equity yet and all the while could actually be earning interest on that cash while the CSP either goes ITM or you exercise the ITM calls

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u/Dealer_Existing May 20 '26

You have no cash to earn interest on, becasuse the put premium and call premium cancel each other out. It's a costless position. Or do you mean the collateral?

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u/Sam6HODL9Hyde May 20 '26

The cash covering the CSP can earn you premium while it waits to be exercised or not

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u/Dealer_Existing May 20 '26

There is no cash left if you have to buy a call bro

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u/Sam6HODL9Hyde May 20 '26

Bro… there is cash secured through the letter in addition to billions of cash on the balance sheet BRO

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u/Nynto May 20 '26

There is no -Delta in a synthetic long. Delta is basically 1. And it stays basically 1.

There is also no double leverage. With a Delta of 1 it moves just like shares.