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Chapter 56: Acceleration
Chapter 56: Acceleration
The $10 and $12 calls have already been exercised.
I was planning to start selling as the price moved above $18. However, I was unsure how much my sell-off would impact the market price.
Balancing the timing and the size of my sell orders to maximize returns while minimizing the impact on the market was crucial.
...
On Friday, October 26th, I wrote the math portion of the midterm. It was nothing crazy, just some basic function analysis, limit proofs, derivatives and some continuous statistics.
I wasn't about to solve the Riemann Conjecture.
After the exams, together with maybe 10 people from the class, we went to celebrate a bit. Someone had some "juice.". It had a nice kick.
On Monday, October 29th, the price of NetEase shot above $18.
I began selling.
By Wednesday, I had offloaded 50% of my shares, but the stock that was supposed to continue up to $22 was now turning against me.
It peaked at around $19.40 before starting to decline.
My sell-off had to be accelerated.
The price fell and fell, with my last shares being sold late on Thursday, November 1st, at a price of $16.92.
I was able to get an average of $18.37 per share for the 429,515 shares I sold.
[AMERITRADE]
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[Total Balance: $7,890,184.55]
[Available Balance: $7,890,184.55]
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[Market Value of Holdings: $0.00]
[Margin: $0.00]
[Buying Power: $15,780,381.10]
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Recent Transactions:
[Shares Sell: NTES, Amount: 429,515, Average Price: $18.37]
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I was hoping for eight million, but it's looking immaculate.
Time to take the next step.
[Withdrawal: $3,690,000, Recipient: Jack Somnus, {Bank of America}]
And the step after that.
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[Tenet Healthcare Corp. ($THC)] [$194.12]
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[Options Chain: Tenet Healthcare ($THC)]
[Call Options]
[Delayed Calls Purchase: Set for November 7, 2002, 10 a.m.]
[Total Investment: $4,200,136.20]
[Expiration Date: November 31, 2002]
[Strike Price: $197.00]
[Price per Option: ~$148.20]
[Quantity: ~28,342 Options]
{Might vary on day of purchase}
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I placed a delayed order for $4,200,000 worth of Tenet Healthcare call options, each with a strike price of $197.00, expiring on November 31, 2002.
These were uncovered call options, which meant that I would have to pay the seller of the options the $4.2M premium and I would be in control of 100 shares per call option.
Every dollar that the stock goes above the strike price would earn me $2.8M.
Meaning that a price just above $198.5 would put me in profit on November 31st.
But the reason for this purchase wasn't as straightforward as it would seem.
In normal circumstances, I would hope for the shares to continue going up after November 7th.
But that is not the case this time.
Tenet Healthcare's stock will crash.
The chief operating officer and the chief financial officer will resign just a few days after November 7th.
Tenet will go under federal investigation for how it handled Medicare payments for costly operations.
The stock price will most definitely NOT exceed the $197.00 strike price and the options will expire out-of-money.
I WILL most definitely lose every penny of my investment.
$4,200,000 down the drain.
That, however, was the intended outcome.
It was not a mistake that I scheduled the call purchase for November 7th at exactly 10 a.m.
I will let Derec Johnson know about this time, and just like that, Immortal Investments will become the player on the opposite side of the trade, essentially scamming me out of my 4.2 million dollars.
"I don't even need to send a letter." I muttered to myself.
I immediately went online and booked an airplane ticket to Boston for today as well as a two-way airplane ticket from Boston to Las Vegas for tomorrow.
"I will talk to Derec in person."
When I was considering different ideas for how to transfer the money to Immortal Investments, this was the most efficient way I could think of.
If only I had access to the dark pool...
I could execute these kinds of shady trades away from the public eye. But unfortunately, I was too small and insignificant to have access to it.
I quickly grabbed a small suitcase from the closet, tossing in a few changes of clothes and other essentials. My notebook went in next, and with everything packed, I left my dorm room.
I made my way down the stairs and to my Mustang.
I brutally threw the suitcase into the trunk.
Fuck!
I forgot about the notebook.
I quickly checked on it. Thankfully, it was still in one piece.
I slid into the driver's seat, turned the key in the ignition and pulled away from the campus.
I have tried to convince Sam to go with me, but I guess our relationship hasn't evolved enough for him to do things like this with me.
I was having a hard time assessing what Sam thought about me because I was constantly thinking about what we did together in my previous timeline.
I think I've been to Las Vegas 3 times with him.
And the truth was that Sam was a huge gambler; he was a sick gambler even.
I always struggled to understand how he could derive so much enjoyment from gambling, especially since he couldn't see what was happening right in front of him.
He'd often answer that he was imagining it all in his mind.
Since Sam didn't want to come with me, I even considered asking Jacob, or maybe Chloe or Charlotte. But buying them a two-way ticket to Las Vegas might be a bit much for them to accept.
They would probably feel like they're owing me.
...
Of course, I wasn't about to drive to Boston for 18 hours.
As I drove into Gainessville airport, I thought about how it might be better that I'm going solo. At least I could take a little detour in Boston to handle a few things.
DING!DING!DING!
Just then, my phone rang.
I glanced at the screen, noted the unfamiliar number, and answered.
"Hello?"
"Good morning," came a smooth female voice from the other end. "Do I have the pleasure of speaking with Mr. Somnus?"
"Yes." I replied.
"Wonderful. This is Claire Thompson from Bank of America," the voice continued smoothly. "I'm reaching out regarding some recent activity on your account. Do you have a moment to discuss this now?"
'They are fast...' I thought.
It must not have taken long since it was a card transfer.
"Well, actually, currently I'm driving into an airport, so no. I don't really have the time."
"Alright then, we'll call later," Claire said. "When would be a convenient time for me to reach you again?"
"I can take your call in about five minutes," I replied. "I just need to park."
"Wonderful," Claire responded. "I'll call you back then. Remember to use your card for air travel!"