Interesting announcement this morning from Sports Direct International confirming that they have seemingly written or sold some put options on Tesco. This references 23 million Tesco shares with a stated maximum exposure of £43 million suggesting a strike price of about 187 pence, although I'm not sure if this factors in and is therefore net of the premium they will have received for selling the options.
This would represent 0.28% of Tesco's market cap. and Sports Direct say: "This investment reflects Sports Direct's growing relationship with Tesco and belief in Tesco's long-term future."
This seems like quite an interesting development given all the negative news surrounding Tesco recently and given that Mike Ashley has proved to be quite a shrewd trader and buyer of retail assets over the years. Probably worth looking at Tesco down here given they have had several profits warnings, a new CEO, a dividend cut and accounting scandal already - can it get much worse? In addition it also seems like a good time now they are on special offer at less than half price in the stock market.