Bro price action in the week of accession announcement

The rest of that week was entirely dictated by the gravitational pull of the massive equity raise. Once the initial shock of the Tuesday announcement faded, the tape spent the remainder of the week bleeding down to anchor itself to the $102 offering price.

Here is how the rest of the week (June 9 – June 13, 2025) played out:

The Post-Announcement Grind

• Wednesday, June 11: With the initial event-driven volume cooling off, the structural reality of the $4 billion in new shares and $4 billion in new debt set in. The stock broke Tuesday's low of $104.49 early in the session and slid steadily downward as the market repriced the dilution, ultimately closing in the low $103s.
• Thursday, June 12: This was a day of pure institutional absorption. The tape tightened into a narrow, low-volume channel right above the $102.00 mark. The massive new supply of shares effectively killed any upward momentum, aggressively capping the intraday highs.
• Friday, June 13: By Friday's weekly options expiration, the stock was practically pinned. It drifted sideways to close out the week hovering right around the $102.00 to $102.50 handle, fully pricing in the discounted secondary offering.

The Mechanics at Play

For anyone actively running delta-neutral spreads that week, the price action became highly predictable once the financing mechanics were public.

1. The $102 Magnet: The sheer size of the secondary offering created an artificial ceiling and floor. Institutional arbitrageurs applied downward pressure to the stock to close the gap with the offering price while simultaneously absorbing the discounted new shares. This trapped the price action in a very tight, easily defined box.
2. IV Crush: Event-driven implied volatility evaporated almost entirely after Tuesday morning. Because the stock was magnetically pinned to the $102 anchor, directional delta was effectively dead for the rest of the week.

It was an environment custom-built for fading volatility. Structuring income trades around that $102 anchor—whether through iron condors or double diagonals—allowed traders to just sit back and let theta decay do the heavy lifting while the broader market chewed through the new float.