Rumor : Samsung is buying Nokia for $22 per share

hajimow · May 11, 2009

Anyone knows more about this rumor?
I am buying call 14 for June

hajimow · May 11, 2009

Now that I think this merge makes sense.

stevegee58 · May 11, 2009

First I've heard of it.

Then again, now that you've said it, it's a rumor.

I know, let's spread the rumor on Twitter!

Kassz007 · May 11, 2009

Where did you hear this? Or did you just make it up?

hajimow · May 11, 2009

No I did not make it up. I just bought 10 calls at 1.20. I am not a big player. I heard from one of my close trading buddies who works on the floor.

KrispyKreme50 · May 11, 2009

No way this is going to happen. Samsung has nothing to gain by buying Nokia right now considering they have all the know how to build phones.

hajimow · May 11, 2009

I still consider it as a rumor but if that is true, LG and Sony might outbid and there would be a price war.

risktaker · May 11, 2009

LG can't outbid another fellow Korean co on international purchase. Not one of this size where a lot of borrowing would need to be done.

And where's the money coming from?

Quote from hajimow:

I still consider it as a rumor but if that is true, LG and Sony might outbid and there would be a price war.

stevegee58 · May 11, 2009

Quote from hajimow:

Anyone knows more about this rumor?
I am buying call 14 for June

Even if you were right about the actual proposed directional move, I'd be concerned about the IV on a straight call purchase (about 57%). If takeover news comes out, the stock's price will pin and IV will fall to near 0.

A bull call spread can be purchased for way less and give a much better risk/reward.

eagle · May 11, 2009

That would be about $80B. Don't you find it's too expensive?