TWTR Options

[BMK]

Okay, so maybe this is kind of a naive question...

I am long the 52.50 call with an expiration of 12/16/22. The stock and the options have stopped trading. It is fairly clear that Musk will complete his purchase of Twitter at the price of $54.20, and that this will happen well before 12/16.

What should I expect to happen?

Cash settlement? Automatic exercise in which I buy the stock for 52.50 and sell it at 54.20?

It is a butterfly. I am short the 55 call and long the 57.50 call. But it is obvious to me that those options will expire worthless, or that they will simply be extinguished by the OCC when the takeover is completed.

 

[FSU]

Your December options will have their expiration dates accelerated to 11/18 and then they will be cash settled. You will in effect sell your 52.5 calls for 1.70 and the other part of your spread will expire worthless. See this OCC memo

https://infomemo.theocc.com/infomemos?number=51250

 

[MoreLeverage]

You can early exercise your 52.50 call if you want the money before the Nov expiry.

 

[mervyn]

What are the odds of AVTI now?

 

[BMK]

What are the odds of AVTI now?

What are you talking about?

Is this posted in the wrong thread by accident?

 

[BMK]

Your December options will have their expiration dates accelerated to 11/18 and then they will be cash settled. You will in effect sell your 52.5 calls for 1.70 and the other part of your spread will expire worthless. See this OCC memo

https://infomemo.theocc.com/infomemos?number=51250

Thanks. That's exactly what I needed to know.

I established the butterfly position on Oct. 11 for a net debit of 1.30. I got nothin' to complain about. I was betting against Musk's obscene attempt to back out of the deal...

 

[TheDawn]

Okay, so maybe this is kind of a naive question...

I am long the 52.50 call with an expiration of 12/16/22. The stock and the options have stopped trading. It is fairly clear that Musk will complete his purchase of Twitter at the price of $54.20, and that this will happen well before 12/16.

What should I expect to happen?

Cash settlement? Automatic exercise in which I buy the stock for 52.50 and sell it at 54.20?

It is a butterfly. I am short the 55 call and long the 57.50 call. But it is obvious to me that those options will expire worthless, or that they will simply be extinguished by the OCC when the takeover is completed.

What you did is not a butterfly though just so you know. It's a synthetic call with a higher strike price of $57.50. Butterfly is supposed to involve puts and your combo has no puts.

 

[TheDawn]

Your December options will have their expiration dates accelerated to 11/18 and then they will be cash settled. You will in effect sell your 52.5 calls for 1.70 and the other part of your spread will expire worthless. See this OCC memo

https://infomemo.theocc.com/infomemos?number=51250

"The merger was approved and subsequently consummated before the open on October 28, 2022." Yup, Elon Musk got fucked. LOL

I can't believe they actually use the term for marriage to describe mergers.

 

[FSU]

What you did is not a butterfly though just so you know. It's a synthetic call with a higher strike price of $57.50. Butterfly is supposed to involve puts and your combo has no puts.

Op had the 52.5/55/57.5 Call Butterfly. So he was Long 1 52.5 call short 2 55 calls and long 1 57.5 call. There is no reason for a butterfly to involve puts.

 

[earth_imperator]

The idiot @TheDawn wrote:

What you did is not a butterfly though just so you know. It's a synthetic call with a higher strike price of $57.50. Butterfly is supposed to involve puts and your combo has no puts.

ROTFL! I think this @TheDawn idiot is just an "advanced" dumb AI pretending to be a human!
Learn, you idiot AI: a butterfly can consist of Calls only, Puts only, or of both, and can have 3 or 4 legs! Got it, you dumb SOB AI!