Jun. 25, 2023
Im against this rule because a hedge fund can acquire a substantial number of out-of-the-money (OTM) call contracts to gain significant leverage comparable to owning a large number of actual shares. Use this leverage to actively participate in the next voting cycle to remove the current management. Aim to place a candidate with strong influence and voting power to execute high-risk investment strategies. The intention is to undermine the company from within, leading to bankruptcy and eventual delisting. Despite this company potentially having 330 million votes in favor from legitimate shareholders, those votes become insignificant if there are 10 billion votes opposing the company from hedge funds that hold massive OTM call contracts with voting rights. Afterwards, sell off all the acquired contracts.