Contents
The Offer
- There is currently an odd lot tender opportunity for OPTU. You can buy up to 99 shares (odd lot) for ~$1.05. They will then buy them back for $2.50 (you need to tell your broker to tender ALL of your shares into the offer and select the odd lots option. It won’t work if you hold more than 99 shares and only tender some of them)
Our Verdict
You can only do this once, can’t do it across multiple brokerages. Some things to be aware of:
- OPTU could go bankrupt or cancel the offering
- Need to pay a brokerage fee (Corporate Action Fee) this can vary from $20-$45 (share best brokerages for this in the comments below)
- Short-term capital gains tax. You will be holding this for less than a year so 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 an odd lot prevision that basically says if you hold under 100 they will buy all of them back. Probably not worth the risk for most people but did think it was interesting to discuss. I’ll be sitting this one out, don’t do it if you’re not comfortable with losing your money.
I was somewhat surprised to not see more communities dedicated to finding these opportunities, if there is interest I might try to set up some alerts.
- Odd lot arbitrage seems to list some as well.
- Odd lot tender seems to be more up to date and has a good guide here.
Hat tip to reader Casseopeia
