Bankrupt and Distressed (BAD) Research and Due Diligence

[Madclown]

GGP: I think the Brookfield offer would result in shareholders receiving $15 per share as opposed to $9. Here are a couple of related articles detailing the brookfield offer. That is why I liked selling the covered calls. Certainly there is risk that both offers could vanish under certain circumstances, but that is the risk I am willing to take. One potential outcome is that the calls will expire worthless because if the $15 per share is the only option on the table then the price will likely settle just below that dollar threshold. In that case, you keep the premium paid and you own the stock at a price well below the current market price. The reason the stock trades at a premium to the $15 offer right now is because of the possibility of better offers. this creates volatility and volatility creates higher premiums in options which in turn gives us an opportunity to put on covered call trades at a lower "net debit".

http://cincinnati.bizjournals.com/cincinnati/stories/2010/02/22/daily39.html

http://online.wsj.com/article/SB10001424052748704448304575196193338670412.html