"How to allocate the SPV structures of Common Stock and Options?" Shen Zhiyi opened the legal memorandum.
"Common Stock is diversified through six to eight Offshore SPV, and the shareholding of each SPV is controlled within 0.5% of the total share capital.
In this way, even if a certain SPV's position is noticed by the market, it will not trigger the disclosure obligation of any single entity.
The Options position is placed in two independent commodity accounts, completely isolated from the SPV structure of Common Stock."
Lin Shicheng pushed the prepared SPV structure diagram onto the desktop,
"There is no cross guarantee or income swap between the Options account and the Common Stock account to ensure that they are legally recognized as independent positions."
Shen Zhiyi read the SPV structure diagram from beginning to end.
"If the SEC requires the Ultimate Beneficial Owner information of all SPVs, can the architecture withstand it?"
"Yes. The beneficial owner chain of each SPV is complete and ultimately points to Times Pioneer Capital.
If the SEC really wants to penetrate, we will cooperate within the legal and compliance framework.
But until then, the market won't see our structure."
Lin Shicheng's answer is very simple.
Zhao Chen picked up the tea cup and looked at the skyline Manhattan outside the window.
"In terms of buying rhythm, Common Stock does not exceed 80,000 shares per day, and is executed in two periods: morning and afternoon.
Do not buy after 2:30 pm to avoid being flagged by the abnormal movement monitoring before the market closes.
Don't buy Options all at once, divide it into three or four batches, and buy Strike Price contracts with different expiration dates each time.
Do not focus on a certain Strike Price to avoid abnormal open positions on Options Chain attracting the attention of Market Maker."
"There is still an issue at the execution level."
Lin Shicheng Put down the pen,
"Ryan Cohen's holdings have been made public. He is the largest individual shareholder, holding nearly 10% of the shares.
If we continue to buy behind him, if the Short Selling institution realizes that there is a second force following the market, it may take action in advance.
Citron has recently been pushing out insinuations that the rise in GME is 'artificially manufactured'.
If they publicly publish a bearish report before our position is completed,
The stock price may fall for a while first, and our cost of opening a position will be affected."
"Citron won't do anything in October."
Zhao Chen's tone is very calm,
"They need to wait for GME's Q3 Report. Q3 Report is expected to be released in early December,
According to the trend of GME in the past few quarters, there is a high probability of another loss Financial Report.
Citron will take action after Financial Report, using loss data to demonstrate that 'GME is not supported by Fundamentals'.
From the release of Financial Report to January Shareholders' Meeting, there are about four to six weeks in between. This period of time is the best window for their Short Selling."
Shen Zhiyi wrote a line of words in his notebook and then raised his head.
"In other words, our position opening must be completed before Q3 Report.
By early December, 4.99 percent of the exposure was fully in place."
"Yes." Zhao Chen put the tea cup down, and the bottom of the cup hit the table with a soft sound.
"Complete the opening of Common Stock position before October 20th, and complete the opening of Options position before mid-November.
Early December, all chips in pocket. And then--"
He paused. "Then wait for Citron to pop out."
Lin Shicheng Collect the three documents on the desktop and put them into folders.
He stood up and prepared to execute the plan. When he reached the door, he paused and turned around.
"Zhao Zong, Common Stock are added to 2.94 million shares, plus the conservative conversion of Options,
The total exposure is precisely controlled between 4.98 and 4.99 percent.
If the stock price rises sharply during the Add Position period, the Delta value of Options will naturally increase.
It may passively exceed 5% at some point in time. The compliance handling method in this case--"
"Preset a buffer zone."
Zhao Chen interrupted him,
"Stop trading when your exposure reaches 4.9%.
This leaves a space of 0.09%, corresponding to approximately 60,000 shares.
If the Delta value continues to rise leading to a passive breakthrough of 5%,
On the first trading day after the discovery, the same amount of Common Stock was sold, bringing the exposure back to below 4.99%.
The sell operation is also executed through the SPV and does not trigger any disclosure obligations."
Shen Zhiyi recorded this sentence in the remarks column of the legal memorandum.
"I will write the suggestions for preset buffer zones into the exposure monitoring process.
The total exposure is automatically calculated after the market closes every day. If the deviation exceeds 0.05% from 4.9%, an early warning is automatically triggered."
Zhao Chen nodded.
Lin Shicheng opened the door and went out.
Shen Zhiyi put the files into Briefcase and stood up.
Su Wantang came over from the tea room, took away the empty cup in front of Zhao Chen, and replaced it with new tea.
"You just said to wait for Citron to pop out."
Su Wantang sat down opposite him, placing the teacup on the table.
"What if they don't jump out?"
Zhao Chen picked up the tea cup, and Tea Soup saw very light steam rising from the mouth of the cup.
He took a sip and put down the cup.
"They'll jump out.
Andrew Left of Citron has been doing Short Selling for more than ten years and has never let go of a stock that he has publicly questioned.
GME's Short Selling ratio is more than 90%, and Short Sellers's cost line is concentrated below ten US Dollar.
If the stock price continues to rise, Short Sellers will be forced to make a margin call.
Citron needs to use a big enough negative to push back the stock price, so that he and the institutions that followed him Short Selling can escape completely.
Q3 Report is the bad news. They will use it."
He stood up and walked to the window.
The skyline of Manhattan spreads out under the September sunshine, and the spire of Empire State Building glows with warm golden light in the distance.
GME's Common Stock is still around 11.88 cents, but the ratio of Short Selling is over 100%. This is the most dreamy thing.
Ryan Cohen's holdings are just over 9.98 percent.
All these numbers have not yet intersected, but the coordinate points have been marked.