Ice, There are several ways to dump shares stealthily, but this size is the problem. Position limits on the options exchanges stop you from using them for the whole kit and kaboodle. Also, everyone knows the size of the TXN position, so, as soon as they start hitting the market in any size, this bowwow takes an immediate return to Txn's cost. Here is some of what you can do: 1. You can buy puts under some of your position. However, with the shares TXN holds, I am not sure that they would not have to get SEC clearance. Also, this is a cash expense and something we would notice in the expense column. 2. You can write deep in the money calls against the position. The question then, is, what happens if you get called early? You can't sell the shares you hold yet. 3. You can do a private arrangement with European style options that do not have early call provisions or position limits. The problem here is that the buyer is likely to be at least as sophisticated as TXN and they will know the score better than the herd, so you get little advantage.
So, some stealth moves are possible, but I think they will be limited. I think TXN will try to feed out shares over time, keeping a solid ceiling on Mu after the April day of freedom.
MB |
