I looked up the lawsuit because I wanted to know what tf was going on and the media stories don’t say clearly:
JPM bought a bunch of warrants – call options. lawsuit does not say how many.
strike was $560.6388
the warrants have a provision triggered if Tesla makes a public announcement of Merger or Tender Offer, saying that JPM gets to change the strike price to “account for” the event
Musk tweets $420 funding secured
JPM calculates that Musk’s tweets damages average IV by 26.4%, drops the strike price to $424.66
Musk goes lol I was only pretending. stock goes up. a lot.
JPM only increases the strike to $484.35, not back to the original
Warrants come due 6/3/20 to 7/29/20. stock price is $3,119.50 ($623.90 after split)
Tesla tells JPM to fuck off and only pays at the $560.6388 strike
JPM wants another 228,775 shares it thinks it is owed. Tesla says no. JPM buys them on the open market for an avg of $709.07 and says tesla owes it $162,216,628.81.