I remember reading a research report which talked about how the spin-offs actually outperformed. I think we need to look beyond the immediate profit, which is great by the way. Today ATMU closed at $31.94. We left significant profit on the table. 
And $32.25 todayā¦ In these situations I just stay focused on what my specific play is. I could have gone unhedged, but usually donāt in these situations because I want to limit the risk, given my knowledge.
But as a matter of fact, of course, youāre right.
Jim
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Very much agree - Weāve seen a few clunkers after spinoff - KVUE from JNJ being one. Nothing forces you to hedge if you feel the spinoff is particularly attractive, but this exercise is about garnering returns in excess of risks taken.
Iāve also seen situations where someone sets up a bull call spread and gets upset when the stock blows through the upper strike price. Makes no sense - if you want unlimited upside , donāt cover the calls; if you want to trade that upside for a lower cost of entry, sell that call. But you donāt often get to have your cake and eat it too.
Except with Bagger Daveās of course.
Vince
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āExcept with Bagger Daveās of course.ā lol
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The trade closed on April expiry; Net-net I made $2540 on IBKR and $2383.45 in ETrade; Pretty awesome. IBKR borrow is $345 and ETrade borrow is $170.
Thank you guys. Appreciate your generosity in sharing the idea.
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Nice haul, Kingran.
I see about one of these a year, though they usually arenāt quite so good, more in the $1,200 neighborhood, and I continue to post them whenever I see them.
Best,
Jim
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