Opendoor Technologies Inc (OPEN) News & EventsOPENOpendoor Technologies Inc

Opendoor Technologies Shares Rise 3.5%

Cboe data suggests bullish flow in Opendoor Technologies (OPEN), with shares up 12c, or 3.5%, near $3.55. Options volume relatively light with 46k contracts traded and calls leading puts for a put/call ratio of 0.15, compared to a typical level near 0.22. Implied volatility (IV30) is higher by 4.0 points near 71.73,in the lowest 10% of observations over the past year, suggesting an expected daily move of $0.16. Put-call skew flattened, suggesting a modestly bullish tone.

Opendoor Transactions to Add $440M Growth Capital

Opendoor Technologies announced a series of transactions whose proceeds will add $440M of growth capital to the balance sheet at a 0% coupon while reducing shares outstanding by 5%. The combined structure is designed so the company expects no net share issuance until stock exceeds $10.38 per share. The transactions consist of a $650M offering of 0% Convertible Senior Notes due 2030, a $158M repurchase of approximately 45.3 million shares of Opendoor common stock, and capped call transactions designed to reduce any potential dilution. The offering is expected to settle on August 19, subject to customary closing conditions. After using approximately $158M of the offering proceeds for the share repurchase and approximately $52.5M to fund the cost of entering into the capped call transactions, the company expects to add approximately $440M of net proceeds to its balance sheet. The company intends to use these proceeds to support disciplined expansion of home inventory and its market footprint, deploying additional capital into an operating model that the Company believes is on a clear path to sustained Adjusted Net Income profitability at current acquisition volumes. As a result, the combined transaction is expected to result in no net share issuance below approximately $10.38 per share and less than 5% net dilution at a share price of $20.00.

Opendoor Technologies Shares Rise 5.58%

Cboe data suggests bullish flow in Opendoor Technologies (OPEN), with shares up 22c, or 5.58%, near $4.16. Options volume running well above average with 141k contracts traded and calls leading puts for a put/call ratio of 0.18, compared to a typical level near 0.22. Implied volatility (IV30) is higher by 2.8 points near 102.07,and above the 52wk median, suggesting an expected daily move of $0.27. Put-call skew flattened, suggesting a modestly bullish tone.The company will report earnings after the close today. Option markets are pricing in a 50% probability of a move greater than 16.58% or $0.69.