Author Topic: Good News finally  (Read 13225 times)

Half Right

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Good News finally
« on: June 14, 2016, 03:53:38 PM »
http://www.bloomberg.com/news/articles/2016-06-14/ex-lendingclub-chief-laplanche-sells-part-of-stake-in-company
Renaud Laplanche, the LendingClub Corp. founder who stepped down as its leader in a shakeup last month, sold off part of his stake in the company, according to a regulatory filing.

Laplanche disposed of 1.2 million shares through Morgan Stanley in early June, according the filing dated June 13. That stock had a value of about at $5.3 million at the close of trading on Monday. It represents about 14 percent of the shares Laplanche held on May 6, according to an earlier filing.

A spokesman for Laplanche had no immediate comment Tuesday. A LendingClub spokesman didn’t immediately respond to a message seeking comment.

Laplanche, 45, has said little about his plans since his surprise resignation as chairman and chief executive officer last month set off a 39 percent slide in LendingClub’s stock. The company, which matches consumers seeking loans with investors willing to fund them, said the exit was prompted by two incidents: Staff had altered application dates on $3 million of loans before their sale, and Laplanche failed to disclose his interests in a fund that LendingClub was considering investing in.

LonghornSF

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Re: Good News finally
« Reply #1 on: June 14, 2016, 04:08:04 PM »
Not sure how this qualifies as good news. If he had confidence in the company he would hold on to his shares. Granted he's probably jilted and/or may need the cash, but this is hardly good news.

Half Right

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Re: Good News finally
« Reply #2 on: June 14, 2016, 04:31:02 PM »
A clean break is the best break

Fred93

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Re: Good News finally
« Reply #3 on: June 14, 2016, 04:52:06 PM »
A clean break is the best break

Uh...  He sold 14% of his shares.  Why do you call that "a clean break"?

I don't think this is good news or bad news.  It is irrelevant to the company, and our relationship to it.

bobeubanks

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Re: Good News finally
« Reply #4 on: June 14, 2016, 06:11:00 PM »
A clean break is the best break

Uh...  He sold 14% of his shares.  Why do you call that "a clean break"?

I don't think this is good news or bad news.  It is irrelevant to the company, and our relationship to it.

There was the rumor he was trying to take LC private. If he's selling shares, he's likely not actually trying to do that. Perhaps "clean break" isn't the right choice of words, but if someone doesn't want RL involved in running LC, this would be good news.

Half Right

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Re: Good News finally
« Reply #5 on: June 14, 2016, 06:25:13 PM »
I wonder if this approach would spur new investors into Lending Club?
http://en.people.cn/n3/2016/0614/c90000-9071896.html?nl=?nl=dlbk&emc=dlbkpm&emc=edit_dlbkpm_20160614

jheizer

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Re: Good News finally
« Reply #6 on: June 14, 2016, 06:33:27 PM »
HAhahahahahaha
Replacement to P2P Quant's Percentile Tool http://lc.geekminute.com

Fred93

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Re: Good News finally
« Reply #7 on: June 14, 2016, 07:02:12 PM »

fliphusker

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Re: Good News finally
« Reply #8 on: June 14, 2016, 07:48:30 PM »
LP and his millions does not really interest me.  The person who interests me is Chen Tianqiao and what he is going to do this week with his options. 
I understand the basic fundamentals of the options, but when would we actually know what he has done?
Quote
It also has call options to buy 15.7 million shares for $11.2 million and put options to sell 9.3 million shares, with all options expiring on June 17, according to the filing.

Rob L

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Re: Good News finally
« Reply #9 on: June 14, 2016, 10:42:07 PM »
These are probably the puts (at close 6/14/2016).
If LC closes at or above $5 per share they are worthless.

Root      Strike Puts     Last    Chg  Bid   Ask  Vol  Open Int
LC     5 Jun 17, 2016   0.79   0.14 0.60 0.90 204  63005      He has (had) 63,000 of these

These are the calls.
If LC closes at or below 4 and the 4's are worthless; at or below 3 and the 3's are worthless.

Root      Strike Calls     Last    Chg  Bid   Ask  Vol   Open Int
LC      3 Jun 17, 2016 1.50    0.20 1.35 1.55 120   49134     He has (had) 45,000 of these (100 shares per option)
LC      4 Jun 17, 2016 0.55           0.50 0.60 1849 124413    He has (had) 111,999 of these

The best outcome for the options market makers is to pin the stock at exactly $4 per share at Friday's close.
That way the $4 calls are worthless. The 5 puts and 3 calls are worth $1 (x 100 shares).
Their minimum payout is 63,000 + 45,000 = 108,000 (x $100). Any price above or below $4 will cost them more.
Even though he loses on his $5 puts as the price goes up Chen benefits much more from any amount above $4 per share due to all those calls that wind up in the money. Should be interesting. The options market makers pinned the stock at exactly $4 per share last expiration and I would not be surprised if they didn't do it again this Friday.

If Chen still owns all these options and the price ends at $4 per share he will put 63,000 and call 45,000 so he'll net own 1.8M fewer LC shares.



 

 













fliphusker

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Re: Good News finally
« Reply #10 on: June 14, 2016, 10:58:35 PM »
These are probably the puts (at close 6/14/2016).
If LC closes at or above $5 per share they are worthless.

Root      Strike Puts     Last    Chg  Bid   Ask  Vol  Open Int
LC     5 Jun 17, 2016   0.79   0.14 0.60 0.90 204  63005      He has (had) 63,000 of these

These are the calls.
If LC closes at or below 4 and the 4's are worthless; at or below 3 and the 3's are worthless.

Root      Strike Calls     Last    Chg  Bid   Ask  Vol   Open Int
LC      3 Jun 17, 2016 1.50    0.20 1.35 1.55 120   49134     He has (had) 45,000 of these (100 shares per option)
LC      4 Jun 17, 2016 0.55           0.50 0.60 1849 124413    He has (had) 111,999 of these

The best outcome for the options market makers is to pin the stock at exactly $4 per share at Friday's close.
That way the $4 calls are worthless. The 5 puts and 3 calls are worth $1 (x 100 shares).
Their minimum payout is 63,000 + 45,000 = 108,000 (x $100). Any price above or below $4 will cost them more.
Even though he loses on his $5 puts as the price goes up Chen benefits much more from any amount above $4 per share due to all those calls that wind up in the money. Should be interesting. The options market makers pinned the stock at exactly $4 per share last expiration and I would not be surprised if they didn't do it again this Friday.

If Chen still owns all these options and the price ends at $4 per share he will put 63,000 and call 45,000 so he'll net own 1.8M fewer LC shares.
Well, my previous statement is now null and void about understanding the options.  But I do have a big chunk of my brain hanging out of my ear.  :(  So it basically turns into a big battle between money when options are on the line, and whoever has more money at stake, wins?  I lost a chunk in managed money in 2008 in the Market and will never go back.  So there are big players trying to rig the stock one way or another?  As I have not used a gambling term is a while, this happened at a casino in Vegas in the '80s, you would be buried in the desert.

Fred93

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Re: Good News finally
« Reply #11 on: June 14, 2016, 11:18:46 PM »
These are probably the puts (at close 6/14/2016).
If LC closes at or above $5 per share they are worthless.
Root      Strike Puts     Last    Chg  Bid   Ask  Vol  Open Int
LC     5 Jun 17, 2016   0.79   0.14 0.60 0.90 204  63005      He has (had) 63,000 of these

His PUT position is 9.3 million shares, and he is SHORT the PUTs, LONG the CALLs.
https://www.sec.gov/Archives/edgar/data/1409970/000119312516598328/d199172dex992.htm

fliphusker

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Re: Good News finally
« Reply #12 on: June 14, 2016, 11:41:56 PM »
So my initial assumption of what Chen is doing, does not matter at all.  He is just betting on red or black?  He has no intent right now to buy more stock?

rawraw

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Re: Good News finally
« Reply #13 on: June 15, 2016, 03:52:37 AM »
This is likely due to the fact he borrowed against his shares, had to get a loan from a Board member to avoid margin call, and then resigned.  I suspect he is just trying to cash flow his obligations. . .

dompazz

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Re: Good News finally
« Reply #14 on: June 15, 2016, 08:24:58 AM »
His PUT position is 9.3 million shares, and he is SHORT the PUTs, LONG the CALLs.
https://www.sec.gov/Archives/edgar/data/1409970/000119312516598328/d199172dex992.htm
Don't see strikes in there, but using the values discussed above and if my math is right, dude breaks even at $4.48 on his option position.  Above that he makes money and below he loses.  Below $5 if he takes delivery he's got 25 million more shares (ok, 24.9999 million) at a cost of $4.48 and above $5 15.7M shares at at cost of $4.43.

If Rob L is correct about the market makers trying to push the stock lower, then $4 is probably the goal, and anything under that is cake, pie, and ice cream.  If they manager to push it at or below $4, I might take a short term speculative long, betting on a bounce back to current levels.