Offers
- There is currently an odd tender opportunity for OPTU. You can buy up to 99 shares (odd lots) for ~$1.05. They will then buy them for $2.50 (you have to tell your broker to bid ALL your shares and select the odd lot option. It won’t work if you hold more than 99 shares and bid only some of them)
Our verdict
You can only do this once, you cannot do it across multiple brokers. A few things to keep in mind:
- OPTU may bankrupt or cancel the offer
- You must pay a brokerage fee (Corporate Action Fee) this can vary from $20-$45 (share the best brokerages for this in the comments below)
- Short term capital gains tax. You will hold this for less than a year, so you will be taxed at your income tax rate.
This works because normally they will prorate the amount of shares you can sell, but there is a weird prediction that basically says if you keep under 100, they will buy them all. Probably not worth the risk for most people, but thought it was interesting to discuss. I’ll sit for this, don’t do it if you’re not comfortable with losing your money.
I was kind of surprised that I didn’t see more communities dedicated to finding these opportunities, if there’s interest I might try to set up some alerts. Arbitration with strange tears seems to list a few more.
Hat tip to the reader Casseopeia
