tag:blogger.com,1999:blog-289207246592440158.post1690125999409236320..comments2022-11-18T00:48:56.882-08:00Comments on The Lumpy Investor: Interesting Rights Offering OpportunityLumpy Investorhttp://www.blogger.com/profile/09134871823971138266noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-289207246592440158.post-44551783506014210542012-04-28T06:24:21.889-07:002012-04-28T06:24:21.889-07:00I don't see how you would break even when the ...I don't see how you would break even when the stock declines 26%. So the marketrisk might be bigger than you think, especially when more people trying to do this type of trade, which would result in substantial selling pressure once the shares have been granted. <br /><br />If you buy 1000 shares at 11.47, imo to breakeven the stock should move to 10.8. Anything below that you lose money (1290* 10.8 = 13932)<br /><br />It might be a possibility to cover the downside with options, however, this will eat most of your profit i would say. <br /><br />am i missing something here?lamanohttps://www.blogger.com/profile/12013658755760987533noreply@blogger.com