Genmab — Februar 2018
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Hi everyone, now that AQR hasn't bought back the shares while both qualitative narratives for shorting seem to be invalid (CAR-T & Dara sales). I believe the probabillity of AQR shorting Genmab as part of a long derivative strategy becomes more likely. I would not be so sure that AQR adding shorts is a negative thing. It could mean that an entity (via AQR) is adding to their long strategy. What do you gu
ys think, unlikely or maybe something to consider? -
@globalmacro, it is very simpel, it is NOT legal!!
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Hm, interesting, why not? Why can't an enity buy a call option and short at the same time? By which goverment security rule is this illegal? And lets say if indeed it's illegal everywhere in the world (which I doubt but ok), then there are always ways around this. Working with different enities that belong to the same holding or in the end are working together etc etc. Wall Street does this more often, no doubt. It's just a hedge
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this kind of setup would be ideal for situations in which a stock price could make such a high jumb that the profit on the long side is way more than the cost on the short side. However if the stock drops, the costs of the longs are hedged with the shorts
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there is ways around it, no doubt, but you cannot add to long position, when You are shorting. But i had the same ideas like you for a long time
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so in times of a take over this could
work very well -
and then we will have a dream scenario, when they close the shorts
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yes exactly
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the fact that they did not close and still are adding tells me this is not a regular short, it feels more as a hedge then a bearish trade. Of course there's always uncertainty, "do they know something"?? the answer with a probabillity of 99% is: no the probably don't know something we don't know. This is your mind that always gets to you in situations like this. But Genmab's story is rock solid, haven't seen these fundamentals ever..
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sygt luk
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