GraniteShares 3x Short Rolls-Royce crash

Interested to know how people are going to ask for money back? Is it on not making it clear how it works?

28 Oct

5 Oct

:point_up_2: :flushed:

How is it sharp practice? It seems that people didn’t understand the instrument or were happy to gamble on it.

The recalculated the price (as they explained) to try and avoid the stock becoming worthless but ultimately it became inevitable as the underlying RR price changed so dramatically.

The stock has only been suspended because GraniteShares withdrew the stock to enable it to be redeemed.

So where is the sharp practice?


So , did you get the notification of early redemption and share withdrawn ?

I didn’t get any notification.
I only saw a lot of money withdrawn from my trading212 account yesterday.
I will ask them to clarify the calculation of the amount they withdrew.

I am pretty desperate.
Really isn’t there anything we can do about this?
Canceling the shares seems like an abusive action to me.
I admit I didn’t read all the terms and conditions of Granite Shares.
I found out afterwards that at page 345 they say about the Early Redemption Event.

Do you guys think it’s worth trying anything against them in the court?

Isn’t the key reason they had to have stopped it otherwise the SP would have been zero.

So when the RR did this:

You would expect the 3x short to move in the opposite direction. But it can’t go any lower.

So they then killed off the stock and gave out 0.196122 per share?

What I don’t understand is how action wasn’t taken sooner, to achieve a higher SP to work with? They probably wouldn’t expect a very quick double increase but like 23 was dangerously close in hitting zero with any large increase in RR.

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They did take action sooner - that was the earlier rebalancing but it then required more rebalancing 2 or 3 times in one day as the RR price increased a lot (from a low starting point).

Would there have ever been a happy ending going 3x short on a stock that instantly doubled?

I can see why it needed to be rebalanced otherwise people would have walked away with nothing a lot sooner.

Seems to me like it was doomed to fail, and incredibly risky with the RR SP already so low.

Frustrating as it is, I just can’t see how people can win a court case. It did what it said on the tin :neutral_face: