A stock that has gathered a lot of speculative attention is TRCH, if you were lucky enough to buy earlier this year you are sitting pretty. The reason is the upcoming merger with Metamaterials see e.g.:
https://seekingalpha.com/news/37062...re-after-declaring-special-preferred-dividend
What I find bizarre is that the exchange decided to introduce TRCH options as far as I can tell just this week. The stock will undergo a major change due to the stock split merger/dividend which should take place by 23rd of June and the rest of the process before the end of the month. Yet series of options going well beyond that have been listed.
What I cant find is what will happen with the options when all this stuff takes place. Are we simply getting options in the new merged company fractionally assigned or cash settled? What about that dividend - its a share dividend - does it just come out of the options and if you dident exercise too bad?
The interest in this is based on the uncertainty around the value of the Dividend. Some interesting option strategies could be opened to make use of that but without knowing what happens if you hold through the event its a bit like walking into a dark room without a torch in your hands.
Anyone know what happens to the options post 06/23 c.q. post merger? Thanks
https://seekingalpha.com/news/37062...re-after-declaring-special-preferred-dividend
What I find bizarre is that the exchange decided to introduce TRCH options as far as I can tell just this week. The stock will undergo a major change due to the stock split merger/dividend which should take place by 23rd of June and the rest of the process before the end of the month. Yet series of options going well beyond that have been listed.
What I cant find is what will happen with the options when all this stuff takes place. Are we simply getting options in the new merged company fractionally assigned or cash settled? What about that dividend - its a share dividend - does it just come out of the options and if you dident exercise too bad?
The interest in this is based on the uncertainty around the value of the Dividend. Some interesting option strategies could be opened to make use of that but without knowing what happens if you hold through the event its a bit like walking into a dark room without a torch in your hands.
Anyone know what happens to the options post 06/23 c.q. post merger? Thanks