SPACSPAC warrant arb
Trade warrants vs common units mispricing
Source: nexpoint.com
SPACSPAC redemption play
Redeem at trust value if don't like deal
Source: nexpoint.com
SPACDe-SPAC short post-merger
Short de-SPAC'd companies post-business combination
Source: nexpoint.com
SpinoffSpinoff stub long
Buy parent post-spinoff announcement; capture stub value
Source: oreilly.com
SpinoffSpinoff sub long
Buy newly-issued spin co; institutional dump creates value
Source: oreilly.com
SpinoffGreenblatt spinoff strategy
Concentrated spinoff investing per Greenblatt's framework
Source: oreilly.com
SpinoffTracking-stock arbitrage
Trade tracking stocks vs underlying ownership
Source: oreilly.com
SpinoffEquity carve-out arb
Trade IPO of subsidiary vs parent stake
Source: oreilly.com
Split-offSplit-off exchange offer
Trade tender to swap parent for sub shares
Source: oreilly.com
Split-offSplit-off ratio arb
Trade exchange ratio implied vs theoretical
Source: oreilly.com
Capital StructurePref vs common arb
Trade preferred shares vs common when mispriced
Source: oreilly.com
Capital StructureConvertible pref vs common
Trade convertible preferreds vs common stock
Source: oreilly.com
Capital StructureClass A vs Class B share arb
Different share classes (e.g. GOOG vs GOOGL)
Source: oreilly.com
Capital StructureVoting vs non-voting arb
Voting premium between share classes
Source: oreilly.com
BuybackTender offer arbitrage
Buy near tender deadline; expected proration
Source: oreilly.com
BuybackModified Dutch auction
Trade companies running modified Dutch tenders
Source: oreilly.com
BuybackOpen market buyback monitor
Track open-market buyback activity for momentum
Source: oreilly.com
Capital RaiseSecondary offering short
Short companies issuing new equity (dilution)
Source: oreilly.com
Capital RaiseRights offering arbitrage
Trade rights offering subscription dynamics
Source: oreilly.com
Capital RaisePIPE deal selloff fade
Trade post-PIPE announcement selloff/recovery
Source: oreilly.com
DistressedBankruptcy investing
Invest in 363 sales / DIP / claims trading
Source: man.com
DistressedCap structure arbitrage
Trade across capital structure (debt vs equity)
Source: man.com
DistressedDistressed bank loan
Trade distressed bank loans vs bonds
Source: man.com
DistressedPost-reorg equity
Buy equity post-emergence from bankruptcy
Source: man.com
ActivistActivist 13D filing trade
Buy stocks getting activist 13D filings
Source: oreilly.com
ActivistActivist concentration trade
Concentrated long position in activist target
Source: oreilly.com
ActivistActivist proxy contest play
Buy stocks heading to proxy fight where activist likely wins
Source: oreilly.com
ActivistActivist board seat anticipation
Buy stocks where activist likely to win board seats
Source: oreilly.com
ActivistActivist breakup catalyst
Buy companies likely to break up under activist pressure
Source: oreilly.com
ActivistActivist M&A catalyst
Buy companies activists push to be sold
Source: oreilly.com
ActivistMini-tender opportunity
Trade mini-tender offers to public shareholders
Source: oreilly.com
ActivistPershing Square style holdings
Track Ackman concentrated activist positions
Source: oreilly.com
ActivistIcahn Enterprises holdings tracker
Track Icahn portfolio for activist ideas
Source: oreilly.com
ActivistTrian Partners playbook
Track Trian's operational improvement targets
Source: oreilly.com
EarningsPre-announcement earnings drift
Buy stocks 2-3 weeks before estimated earnings beats
Source: oreilly.com
EarningsPost-earnings announcement drift (PEAD)
Buy biggest earnings beats; ride 60+ day drift
Source: oreilly.com
EarningsEarnings revisions momentum
Buy stocks with positive analyst revision momentum
Source: oreilly.com
EarningsEarnings whisper number trade
Trade gap between consensus and whisper
Source: oreilly.com
EarningsPre-earnings IV expansion
Long ATM straddle 2 weeks pre-earnings; close pre-announcement
Source: quantpedia.com
EarningsIV crush short straddle
Short ATM straddle right before earnings; vol crush profit
Source: quantpedia.com
FDAFDA approval long bet
Buy biotech ahead of likely FDA approval
Source: oreilly.com
FDAFDA rejection short
Short biotech likely to receive Complete Response Letter
Source: oreilly.com
FDAPhase 3 readout binary
Trade binary clinical trial readouts (sized appropriately)
Source: oreilly.com
FDAPDUFA date positioning
Position around Prescription Drug User Fee Act dates
Source: oreilly.com
DividendDividend capture strategy
Buy ex-div for ~holding period; capture dividend
Source: quantpedia.com
DividendSpecial dividend arbitrage
Buy stocks announcing special dividends
Source: quantpedia.com
DividendEx-dividend gap trade
Trade post-ex-div gap (often partial recovery)
Source: quantpedia.com
DividendDividend cut short
Short companies likely to cut dividends
Source: quantpedia.com
Index AddsRussell adds buy-and-hold
Buy stocks added to Russell indices on rebalance
Source: quantpedia.com
Index AddsS&P 500 inclusion drift
Buy stocks added to S&P 500 ahead of rebalance date
Source: quantpedia.com
Index AddsNasdaq-100 special rebalance
Trade special Nasdaq-100 rebalances (e.g. 2023 concentration)
Source: quantpedia.com
Index AddsMSCI reclassification
Trade MSCI EM/DM reclassifications
Source: quantpedia.com
Index RemovalsIndex deletion fade
Buy stocks deleted from index after forced selling
Source: quantpedia.com
IPOIPO unlock period short
Short stocks at end of 6-month IPO lockup
Source: oreilly.com
IPOIPO first-day pop fade
Fade IPO first-day pop in subsequent days/weeks
Source: oreilly.com
IPODirect listing flow
Trade direct listings with no underwriter support
Source: oreilly.com
IPOQuiet period expiration
Buy IPOs around analyst initiation post-quiet period
Source: oreilly.com
InsiderCluster insider buying
Multiple insiders buying simultaneously = high-conviction signal
Source: quantpedia.com
InsiderCEO-CFO buy combo
C-suite buying signals stronger than director buys
Source: quantpedia.com
InsiderInsider 10b5-1 plan changes
Cancellations or modifications to insider trading plans
Source: quantpedia.com
LitigationLegal settlement fade
Trade post-litigation settlement reactions
Source: oreilly.com
LitigationClass action overhang
Long stocks with diminished litigation risk
Source: oreilly.com
LitigationPatent expiration play
Short pharma facing major patent cliff
Source: oreilly.com
RestructuringSpin-off and merger combo
Companies doing both spinoff and acquisition
Source: oreilly.com
RestructuringCarve-out IPO arbitrage
Trade parent retained-stake during carve-out
Source: oreilly.com
RestructuringReverse merger play
Trade reverse merger backdoor IPO companies
Source: oreilly.com
Risk MgmtDeal probability weighting
Weight position by closing probability x spread
Source: returnstacked.com
Risk MgmtConcentration limits per deal
Cap exposure per deal at 2-5% of capital
Source: returnstacked.com
Risk MgmtSector concentration limit
Cap sector exposure across multiple deals
Source: returnstacked.com
Risk MgmtTime-to-close discipline
Exit if deal extending beyond expected timeline
Source: returnstacked.com
PerformancePaulson 2007 ABX trade
Greatest event-driven trade in history; size matters
Source: streetofwalls.com
PerformanceEvent-driven uncorrelated returns
Event-driven returns historically uncorrelated to broad market
Source: oreilly.com
Adjustable exchange ratio collar
Stock-for-StockBoth
Trade collared deals where exchange ratio adjusts with acquirer price
Source: streetofwalls.com
Anticipate regulatory failure
Failed DealShort
Short target with high regulatory risk; profit on break
Source: streetofwalls.com
Antitrust concern shorts
Failed DealShort
Short deals likely to face DOJ/FTC challenges
Source: streetofwalls.com
Bidding war positioning
Hostile TakeoverLong
Position for multiple bidders driving price up
Source: streetofwalls.com
Cash + Stock blended deal
Mixed ConsiderationBoth
Trade blended consideration deals with proper hedging
Source: returnstacked.com
Cash deal long target
Cash MergerLong
Buy target stock at discount to cash offer; collect spread on close
Source: streetofwalls.com
Cash deal portfolio diversification
Cash MergerMethodology
Run 30-50 deals simultaneously to diversify break risk
Source: returnstacked.com
Cash deal spread tracking
Cash MergerMethodology
Track spread = (offer - mkt price) / mkt price; annualized
Source: streetofwalls.com
Cash election option deals
Mixed ConsiderationBoth
Trade deals offering shareholder election; hedge proportionally
Source: returnstacked.com
DIP financing returns
DistressedLong
High-yield DIP loans senior in bankruptcy
Source: man.com
Default rate cycle awareness
DistressedBias
Distressed opportunities expand in default-rate up cycles
Source: man.com
Defense play short
Hostile TakeoverShort
Short target if defense (poison pill) likely to scuttle deal
Source: streetofwalls.com
Distressed debt long
DistressedLong
Buy stressed bonds at discount; recover on restructuring
Source: man.com
Distressed exchange offers
DistressedBoth
Trade distressed exchange offer dynamics
Source: man.com
Fixed exchange ratio simple
Stock-for-StockBoth
Simple fixed-ratio swap; no adjustment
Source: streetofwalls.com
Foreign regulator risk
Failed DealShort
EU/China regulator risk; price-in higher break probability
Source: streetofwalls.com
Fulcrum security identification
DistressedLong
Identify fulcrum security that converts to equity
Source: man.com
High-conviction cash deal
Cash MergerLong
Concentrate on highly likely-to-close deals (regulatory clear)
Source: streetofwalls.com
Hostile bid speculation
Hostile TakeoverLong
Buy target on hostile bid expecting higher counter-bid
Source: streetofwalls.com
Loan-to-own strategy
DistressedLong
Buy distressed debt to convert to equity in restructuring
Source: man.com
Negative spread (overbid expected)
Spread WidthLong
Stock above offer price = market expecting bidding war
Source: streetofwalls.com
SPAC liquidation arb
SPACLong
Buy near deadline if no deal; collect trust value plus interest
Source: nexpoint.com
SPAC pre-merger arbitrage
SPACLong
Buy SPAC near $10 trust value; lower-bound protected
Source: nexpoint.com
Spread term structure
Spread WidthMethodology
Spread varies with deal timeline; longer = more risk
Source: streetofwalls.com
Stock deal long T short A
Stock-for-StockBoth
Long target short acquirer at exchange ratio
Source: streetofwalls.com
Tight spread (high prob close)
Spread WidthLong
2-3% annualized = high probability deal
Source: streetofwalls.com
Walk-away rights consideration
Stock-for-StockMethodology
Account for material adverse change rights in pricing
Source: streetofwalls.com
Wide spread (deal risk)
Spread WidthBoth
8-15% spreads price meaningful break risk
Source: returnstacked.com
An encyclopedia of publicly documented strategies for education. YCAI does not recommend, endorse, or trade any of these. Not investment advice.