Home > Boards > US Listed > Biotechs > Chelsea Therapeutics International Ltd. (CHTP)

I need some help understanding why people are

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
Guppi00 Member Profile
 
Followed By 2
Posts 130
Boards Moderated 0
Alias Born 02/20/13
160x600 placeholder
Guppi00   Monday, 05/12/14 05:21:07 PM
Re: None
Post # of 3033 
I need some help understanding why people are buying a significant amount of June, September, and December $7 calls?

The price is "fixed" at $6.44/share whenever the deal closes. So where is the value in these options that I am not seeing? Covering a short position doesn't really make sense to me and I can't see a strong potential for the stock price shooting up above $7 before then (although, I will admit that a better offer is a possibility, but I wouldn't feel comfortable betting hundreds/thousands in options on the possibility...)

Anyone with a theory, I would appreciate the input.

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences