Replies to post #604520 on Mr Cooper Group Inc (COOP)

[Juschilln]

I would much rather have 1 COOP per U escrow to be honest.

[BigBang]

Now that I would call fair and reasonable!

[lodas]

Major Bankz.......you just might have hit on something with your post.... If you look at the open interest for the April puts, you see 1118 open positions, up from about 1080 a few days ago.... something big is coming in april... why do I say this....?...the options table for those puts don't show whether they were a buy or a sell position, but one can extrapolate from the premiums offered which sell or buy trade was placed.... if someone bought those puts, he is thinking the stock is going to be below 12.50 at expiration in april....he paid 1.10 dollars per share for 4 months, or about 1.10 divided by 12.50, equals about 8%.....If someone was seller of the put, he would want more premium..so, 1.10x 12/4=3.30.....3.30/12.50= 21%........remember the seller of the put takes the risk down to zero, whereas the buyer of the put only takes the 1.10 loss.... so, my guess is that those puts were bought by someone who thinks that there will be some selloff in april on coop stock, maybe in anticipation of a share offering to get those escrow shares at 12.50, at which time the market will think it is dilution, and drop the price of coop stock, at which time the short sellers will finally cover....good thinking Bankz..... Lodas