I am still learning about the merger arena so I have no real insight to what is actually going to happen. I took a chance with a buck and bought 20 BUD Nov 70 calls @ a nickle just in case it does go to $70.15 before next Thur/Fri earlier in the week. A day later I picked up a dozen Dec calls for a dime (payed too much) which covers me until almost Christmas for any rise above 70.
I have never seen an option NOT move when it is so close to being in the money. It has seen a solid week of gains....in a down market. If the deal is closed in the next week, then 70 a share for my long position and 0 for my option positions. If it takes 3 to 4 weeks from now, or longer, to close, then why would they (who is this "they" everyone's always talking about?) want to hold it back from getting above 70?
One strategy is: if it's over 70...short it with a covered long position. I'm sure there is a name for it but if I have 2000 shares long @ 64. There will be $6 profit right now. If it gets to 76 before payout, short 2000 shares for 6 more, using my long position to cover the short. It looks good on paper anyway.
I will be doing the happy Snoopy dance if it hits for 71-72. The neighbors will know I'm home... the next street over will know I'm home. LOL
Good luck to everyone!
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