DHT Holdings Inc (DHT)

[Jack8973902]

It’s going to be an interesting Friday with DHT Izzy. There’s 8,000 open interest on $5 calls and 12,000 open interest on $6 calls. The people who hold these on Friday will probably exercise their right to purchase these at the strike price which means that about 2 million shares that need to be bought and then sold to call holders or just sold if covered calls. The people who own the option calls can either sell for a profit or hold for the dividend. I’m assuming the stock price is over both 5 and 6 but maybe not $6. Just writing this down makes my head spin and I don’t know the situation with the convertibles which may be cheaper shares will be given to bond holders and they may sell that day. There must be some reason the CEO coordinated all of this but you’re absolutely right - who can predict. Could be big fluctuations in stock price that day.