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Technology Stocks : Wolf speed
WOLF 21.68-8.8%1:23 PM EST
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To: slacker711 who wrote (10480)2/1/2022 3:54:40 PM
From: ynotgoal1 Recommendation

Recommended By
slacker711

   of 10712
 
Anybody want to explain the capped call part of this transaction to me?

I'll take a shot at it. My reading is Wolfspeed is buying calls with a $212 strike price to limit their risk in the event WOLF stock goes above that price before the notes are converted to shares. They expect those who are selling the calls to purchase WOLF stock (or some similarly effective option derivative) in the next few days which would have the effect of supporting the current price. Again, just my reading of it.
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