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Bullboard - Stock Discussion Forum Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It... see more

TSX:BBD.A - Post Discussion

Bombardier Inc. > Chance or something else
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Post by lb1temporary on Feb 16, 2023 9:25am

Chance or something else

Yesterday I was active on the option market.
In the morning, someone bought 150,000 march 17 options at 62$ at a price in the 1,80$ - 1,90$ range. It's a 270 k$ bet on options with an implied price of 63,90$ (price to be in the money). It's a huge premium paid while the SP was at only between 58$ and 59$ with low volume.   
For taking such a chance, to be profitable you have to almost double your bet; implying a SP of 65,80$ and more before march 17.
I'm still puzzled about that trade.
Comment by Truthifest on Feb 16, 2023 9:42am
That's interesting, especially with volume high and price up nicely with the stock this morning.  Let the speculation begin.  Investor Day is 2-3 weeks later than normal.  IIRC, the stock popped before the NetJets 8000 order was announced recently.  Hmmmmm...
Comment by lb1temporary on Feb 16, 2023 9:47am
....and that was happening at the beginning of the lift-up. Something is boiling.
Comment by clubhouse19 on Feb 16, 2023 9:49am
  With this kind of volume and surge...something seems to have leaked  
Comment by vonSachsenanhal on Feb 16, 2023 9:56am
This rise probably has little to do with any new info being leaked. It's just that all those who wanted to take a profit or were simply scared out of their shares by the big post-earnings drop have sold and it's time to go back to new highs.
Comment by clubhouse19 on Feb 16, 2023 1:16pm
Well I guess the leak has been sealed. What volatility !!! Everything is normal again. Revolving door trading !!
Comment by Acuras1 on Feb 16, 2023 9:47am
Let's see if that bet pays off. As you point out, it's a big bet to take and not your average one by a novice:)
Comment by PabloLafortune on Feb 16, 2023 10:33am
2023 may be the first year bombardier has free operating cashflow since 2010? Anyway, its been a long time. LTD is still $5.6B but they have lots of time to address it - now they can raise capital or debt without actually "needing" the money which means the result of that exercise will be a lot better.
Comment by flamingogold on Feb 16, 2023 11:04am
One way they may get institutions in is by doing an offering at a discount. It increases the float (which is still puny) but they use some of the funds to trash the debt further and possibly fund new programs. A win-win-win for funds, shareholders and the company. Dilution at a time when a business is in decline is obviously detrimental, but in this scenario it could be very beneficial.
Comment by Shamhorish on Feb 17, 2023 4:58pm
offering at a discount?   I THINK IT IS WRONG to do  offering at a discount, you do that if you have no other choice institutions will come on time, bbd is doing well and slowly slowley, sh will rise by the good performance, increased rev, positive cash flow no dolution is needed, bot for bbd, not for us investors
Comment by johnney on Feb 17, 2023 8:10pm
Flamingogold, totally agree on that, a share offering!!
Comment by johnney on Feb 17, 2023 8:20pm
Flamingogold, totally agree on that, a share offering!!
Comment by BBDB859 on Feb 16, 2023 3:37pm
Hey Pablo. It's going to get easier to get to positive OCF from now on, as the Capex is almost getting down to the $200M/$250M annual target. This was inevitable once the larger items are off the table. We'll see OCF in the positives consistantly, after the Pearson plant expenditure is over with, and we're down to about $4.5B of LTD, on every Quarter going forwardin 2024. The LTD ...more  
Comment by Acuras1 on Feb 17, 2023 2:43pm
It's about 2.40pm and options bought at quoted $63.80 are in the money for now. as someone else pointed out leaks of news to come make it tempting for some.  Not accusing anyone but could be a classic example someone caught by chance. We'll never know one way or another:) GLTA
Comment by lb1temporary on Feb 17, 2023 2:59pm
That trade taken alone was a nonsense.  Betting 270 k$ on 4 weeks options with an implied SP of 63.80$ when the current price is less than 59$ with low volume didn't make sense if it was not a part of a plan. People are not idiots; i'm pretty sure that the same investor have ''stimulated'' the market after his bet. In the minutes after he place his order there was a ...more  
Comment by Truthifest on Feb 17, 2023 3:16pm
Wouldn't have worked if there wasn't a lot of pent-up demand.  That huge sell-off went way too far, a lot of folks like myself wanted back in.  This trader just provided a spark.  One reasonable way to see it, anyway. 
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