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SPAC Gamma Trade On. FUSE/MoneyLion Surges 10.5%.

The SPAC gamma trade is on and investors are watching redemptions and votes closely. The 28th is going to be a big day with 7 merger votes and 1 extension vote.

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The biggest thing on SPAC investors minds is the Gamma trade that is happening around votes. It's an opportunity, though brief, to see some pretty significant upside as the vote and redemptions happen, float goes low, and price spikes. Those watching for this trade will want to note the upcoming SPAC votes (and THCA's extension vote on the 28th too).

Sep 22 | $ 10.02 | CTAC - Cerberus Telecom Acquisition Corp --> Kore
Sep 22 | $ 10.76 | LATN - Union Acquisition Corp. II --> Procaps Group
Sep 28 | $ 9.99 | MAAC - Montes Archimedes Acquisition Corp --> Roivant Sciences
Sep 28 | $ 9.97 | CAHC - CA Healthcare Acquisition Corp. --> LumiraDx Ltd
Sep 28 | $ 9.99 | STPC - Star Peak Corp II --> Benson Hill, Inc.
Sep 28 | $ 9.98 | SPFR - Jaws Spitfire Acquisition Corporation --> VELO3D
Sep 28 | $ 10.05 | DMYI - dMY Technology Group Inc III --> ionQ, Inc.
Sep 28 | $ 9.99 | PTK - PTK Acquisition Corp. --> Valens Semiconductor
Sep 28 | $ 10.08 | GLEO - Galileo Acquisition Corp. --> Shapeways, Inc.
Oct 05 | $ 10.08 | ITAC - Industrial Tech Acquisitions Inc --> Arbe Robotics Ltd
Oct 12 | $ 9.97 | KURI - Alkuri Global Acquisition Corp. --> Babylon
Oct 14 | $ 10.12 | VIH - VPC Impact Acquisition Holdings --> BAKKT Holdings, LLC
Oct 27 | $ 10.11 | TMTS - Spartacus Acquisition Corporation --> NextNav Holdings, LLC

The day in SPAC land was relatively quiet. FUSE shareholders held their vote on the MoneyLion deal. No surprise that the vote passed, but no mention of redemptions. FUSE was up +10.5% on the day.

FUSE surged +10.5% as shareholders voted on the MoneyLion deal

FUSE surged +10.5% as shareholders voted on the MoneyLion deal

There was also a deal -- GSQD taking Transfix public -- announced this morning, but it didn't make too much noise ending up less than half a percent at $9.86. That said, it falls into the category of a "real revenue" business so investors may find it worth their time to do a little due diligence on it.

No Change in SPAC Narrative, but Evolution

The SPAC market is definitely evolving before our eyes, and has been for the past year as the pendulum swung from "peak SPAC" back past equilibrium to where we are now. It won't be one big thing that brings the market back to equilibrium, but lots of incremental changes that include changes to the structure, fewer sponsors/random SPACs, and demonstrable track records for serious SPAC players.

The biggest risk we continue to watch is "Peak Deal." This is when we will have an incredible amount of SPACs maturing to ~18 months and desperately needing to find deals. The risk is that valuations will get out of hand, deals will be notoriously bad (yes even worse than some we've already seen), and it will create a vicious cycle that will spin out of control. 

The good news is that type of event would likely dry up SPAC IPOs even further which is necessary for equilibrium and would further reduce the number of bad sponsors out there. But, SPACs are here to stay so the continuing evolution, additional/revised regulation, and  trading opportunities it all presents will be closely watched.

Today's SPAC Stock Movers

Fusion Acquistion (FUSE) was up today as it deSPAC'd and some other big moves as well. Positive movers included both LATN and ROT which we recently had on the podcast.

Biggest Gainers
10.47% ~ $ 10.76 | FUSE - Fusion Acquisition Corp. (Announced)
6.50% ~ $ 10.65 | AMHC - Amplitude Healthcare Acquisition Corporation (Announced)
4.87% ~ $ 12.06 | TDAC - Trident Acquisitions Corp (Announced)
3.79% ~ $ 10.40 | ROT - Rotor Acquisition Corp (Announced)
2.84% ~ $ 10.15 | SV - Spring Valley Acquisition Corp (Announced)
1.89% ~ $ 12.38 | FST - FAST ACQ CP (Announced)
1.38% ~ $ 10.25 | IPOF - Social Capital Hedosophia Holdings Corp VI (Pre-Deal)
1.37% ~ $ 10.38 | KVSB - Khosla Ventures Acquisition Co. II (Announced)
1.28% ~ $ 9.82 | PSPC - Post Holdings Partnering Corporation (Pre-Deal)
1.24% ~ $ 11.38 | ALAC - Alberton Acquisition Corporation (Announced)
1.14% ~ $ 9.77 | MITA - Coliseum Acquisition Corp. (Pre-Deal)
1.08% ~ $ 9.96 | ARYE - ARYA Sciences Acquisition Corp V (Pre-Deal)
1.03% ~ $ 10.76 | LATN - Union Acquisition Corp. II (Announced)
1.01% ~ $ 9.97 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
.95% ~ $ 24.43 | PCPC - Periphas Capital Partnering Corporation (Pre-Deal)
.72% ~ $ 9.76 | MCAF - Mountain Crest Acquisition Corp. IV (Pre-Deal)
.72% ~ $ 9.80 | TEKK - Tekkorp Digital Acquisition Corp (Pre-Deal)
.72% ~ $ 9.80 | SVFC - SVF Investment Corp. 3 (Pre-Deal)
.71% ~ $ 9.93 | DYNS - Dynamics Special Purpose Corp. (Pre-Deal)
.62% ~ $ 9.77 | VGII - Virgin Group Acquisition Corp. II (Pre-Deal)

Biggest Losers
-1.30% ~ $ 9.86 | HLXA - HELIX ACQUISITION CORP (Pre-Deal)
-1.01% ~ $ 9.80 | ROCG - Roth CH Acquisition IV Co. (Pre-Deal)
-1.00% ~ $ 9.88 | GGGV - G3 VRM Acquisition Corp. (Pre-Deal)
-.92% ~ $ 9.72 | ASPA - Abri SPAC I, Inc. (Pre-Deal)
-.82% ~ $ 9.62 | TWCB - Bilander Acquisition Corp. (Pre-Deal)
-.72% ~ $ 9.67 | ACAH - Atlantic Coastal Acquisition Corp. (Pre-Deal)
-.62% ~ $ 9.60 | SMIH - Summit Healthcare Acquisition Corp. (Pre-Deal)
-.61% ~ $ 9.72 | HCII - HUDSON EXECUTIVE INVESTMENT CORP. II (Pre-Deal)
-.52% ~ $ 9.72 | PRPC - CC Neuberger Principal Holdings III (Pre-Deal)
-.52% ~ $ 9.65 | FICV - Frontier Investment Corp (Pre-Deal)
-.51% ~ $ 9.69 | EAC - Edify Acquisition Corp. (Pre-Deal)
-.51% ~ $ 9.74 | DLCA - Deep Lake Capital Acquisition Corp. (Pre-Deal)
-.51% ~ $ 9.77 | LAAA - Lakeshore Acquisition I Corp. (Pre-Deal)
-.51% ~ $ 9.81 | DUNE - Dune Acquisition Corporation (Pre-Deal)
-.41% ~ $ 9.65 | PSAG - Property Solutions Acquisition Corp. II (Pre-Deal)
-.41% ~ $ 9.67 | AEAC - Authentic Equity Acquisition Corp. (Pre-Deal)
-.41% ~ $ 9.69 | ATVC - Tribe Capital Growth Corp I (Pre-Deal)

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)

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