RE: Friday's Massive Volume Part 21 Sep 2020 01:02
https://libertyglobal.gcs-web.com/static-files/48047655-42a2-4bb6-b781-94a42b79a18e Here is a link to Liberty Global 10Q a key regulatory document published 4th Aug. Page 15 shows Liberty retains its investment in ITV, but suffered a $430m loss on the mark to market value over the first two quarters of the year. However they hold a derivative instrument termed "ITV collar" which partly offset this loss increasing value by $350m page 19. The collar is a combination of buying put and writing call options. The put options increase in value when the ITV share price falls, writing call options means Liberty has no upside if the share price rises above the option strike price, but gives Liberty a revenue stream with which to buy the put options. This option strategy is used by cautious investors who are long of a stock but believe the share price might fall. In this case it may be GS which is cautious because Liberty have pledged their ITV shares as security against a loan from GS and the value of the ITV stake plus the collar is $370m less than the value of the loan (page 16). I believe it is unlikely that Liberty is the source of the shares dumped in the market on Friday because at this price there is no possibility of repaying GS, and these shares are more likely to represent those formerly held by Capital .