Attention, those of you who own Echostar Corporation (SATS): SATS was formed in a merger between Dish Network (DISH) and the prior Echostar Corporation in January of 2024. We issued a position alert on that action, which you can read here.
As a result of that merger, Snider clients who owned DISH at that time were left with an SATS position that had a low purchase level (usually 35 or 70 shares) and which they were unable to sell calls against. In the past several weeks, Echostar Corporation has announced several new business deals with AT&T and SpaceX; this has had the effect of causing a significant appreciation in the price of SATS.
Because of the appreciation in value of SATS, we are recommending that all owners of SATS sell the position and transmogrify if necessary. If you are able to sell your remaining shares of SATS for more than your average cost, there is no need to transmogrify.
Please complete the following steps to begin any necessary adjustments.
- To begin Trade Day, sell your remaining shares of SATS
- Trade all your existing positions
- Check your “Profit” from the Closed Positions on SATS. Click on Allocated Cash Worksheet, the Closed Positions. (See Screenshot)
- Find your SATS position. It should be near the top. If profitable, you can proceed to Generating New Positions like normal. Most clients will close the position profitably and will not require Transmogrification.
- If your SATS position currently shows a loss, please give us a call. We can guide you through the next adjustments.
If you have any questions, please don’t hesitate to contact us at
support@snideradvisors.com or 1-888-6-SNIDER. We’ll be happy to walk you through the process.
