Recent content by Monorail

But that's just the point: it's not worthless for the very same reason the underlying is still trading at a discount to the non-binding proposed offer of $21: the buyout isn't carved in stone just yet. (and yes, this is where you come back and tell me to put in a $0.01 Bid if I'm so sure there's...

Thank you, that was helpful. (And yes, AYA is trading at $19 even though the non-binding proposal on the table is for $21, so I assumed the discount was to reflect possibility it may not happen.) I'm interested to see how this all plays out in the options arena...I'd always presumed that...

I'm talking about the time value that is a part of the premium paid for an option right now (while buyout has simply been proposed, but is not 100% certain to be consummated). A Nov '16 $30 Call, for example, has a higher premium than a March '16 $30 Call because of the much longer time horizon...

OK, so at first glance it appears that the answer to my first Q is indeed that any ITM options will just get liquidated at their intrinsic / ITM value. But I suppose my 2nd question (about the time-value premium) remains and would seem to be just as convoluted as I suspected, right? If an...

Right but I'm asking what's typical in cases like this. That would seem to be a rather important question for anyone looking to buy or sell options in a company where a corporate action is in the immediate future. "Check the OCC website once the acquisition actually takes place" doesn't really...

I've googled this, but found the answers frustratingly inconsistent -- most articles just say "ask your broker", which I find to be a pretty wishy-washy answer...figured there'd be hard and fast rules on this, no? FWIW, I've been following the ups and downs of canadian gaming company Amaya Inc...