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Author Topic: WTB: ASICMiner PUT option contract  (Read 1543 times)
asnonmous
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May 05, 2013, 04:02:58 AM
 #1

I would like to BUY ASICMiner PUT contracts, 5000 shares(Board seat).

Strike price:  1.15 BTC/share
Price: Negotiable, suggest 7%.
Length: 6-9 months, negotiable.

Here's how this works, subject to negotiation.  We'll sign a contract for the shares of ASICMiner.  At any point during the duration of the contract, I have the option of exercising the contract, and sell ASICMiner shares to you for 1.15 BTC each.

What you get: A significant number of ASICMiner shares or BTC, delivered immediately.
The BTC needed to complete the contract will be held in escrow, preferably with John K if he is ok with this.

If during the contract, ASICMiner is worth equal or more than the strike price(I.e., if I choose not to exercise the option), you get the BTC back, and you keep the btc/shares that you got up front, which should be significant.

If during the contract ASICMiner is worth less than the strike price(i.e., if I choose TO exercise the option), you get my AM shares and I get the BTC.  You still get to keep the btc/shares that you get up front.

I can prove ownership of the shares.

I would prefer to close this deal with a single participant, but I expect finding someone with that much BTC (5750 BTC) to sell me the contract is unlikely, so I can break it up.  No less than 500 shares though, to keep this manageable for the escrow.

Who would take this deal?  Someone who thinks ASICMiner will rise a bit or stay where it is over the duration of the contract.
Why am I doing this deal?  Because I have a pretty major proportion of my total investments in Asicminer, and I need to balance out this risk to stay sane.  I believe in Asicminer, and as a board member I have strong evidence that the company is working on a very strong long term plan, in addition to their internal goals of 50%+ reinvestment of dividends.  The most recent purchases by Friedcat (200TH/s on order, 10,000 USB miners on order, long term contracts for hundreds more TH/s) are indicative of these long term goals & planning.
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John (John K.)
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May 05, 2013, 05:28:32 PM
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PS: I can escrow this, of course. Just drop me a PM when it is needed.

My BTC Tip Jar: 1Pgvfy19uwtYe5o9dg3zZsAjgCPt3XZqz9 , GPG ID: B3AAEEB0 ,OTC ID: johnthedong
Escrow service is available on a case by case basis! (PM Me to verify I'm the escrow!)

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May 07, 2013, 03:32:31 AM
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You do realize this is half a million dollars right? Out of my league. Good luck.
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May 11, 2013, 08:20:38 AM
 #4

Will Friedcat verify that you own these shares?
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May 11, 2013, 11:51:32 AM
 #5

In order to secure this PUT an investor would have to have two things:
1. 5750 BTC
2. A firm belief the price of AM shares will remain above 1.15 BTC for the next six months

If an investor had 5750 BTC he could buy 3859 AM shares at the current price.
3859 AM shares will pay out approximately 900 BTC in dividends (estimated) over the next six months.
The six month ROI if an investor purchased AM shares is: 900/5750=15.6%

The price of this option should cover the foregone dividends at a minimum.

However, I would be willing to cover your downside if you agree to sell your shares in a timely fashion. Presumably you want to purchase a PUT to offset downside risk. You want the price to be able to fluctuate below 1.15 without selling in case the price rebounds in the next six months.

If you would be willing to sell me a corresponding CALL @ 0.8 BTC, I would be interested in funding this. In effect, you would be protected from any losses between 1.15-0.8 BTC. You would bear any losses below 0.8 BTC.

This would allow you to keep your shares while the price fell below 1.15 BTC but encourage you to sell them before they lost all their value. I would charge 15% for the PUT and pay you 7.5% for the CALL.
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May 11, 2013, 08:26:02 PM
 #6

Watching this thread.
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May 11, 2013, 09:02:32 PM
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This is interesting, keeping in mind that the value of.the shares depend on the value of btcat given time

ok
asnonmous
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May 11, 2013, 09:20:13 PM
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This is interesting, keeping in mind that the value of.the shares depend on the value of btcat given time

Nevermind, I've opted to do other things.  Firstly, as Pzi4nk pointed out, AM has such huge upsides that any such put option would have to be ridiculously one-sided to make it worth it.  I did the same math(after I posted) and realized no one would do this, especially not with nearly a million dollars.

Secondly, no one responded, which wasn't surprising.  So this thread can be closed.
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