Sing Options
2022-01-23

The article seems to suggest a higher prob the deal would not be approved. If that is the case, should actually sell at the current price to lock in the profits as the stock would be expected to tank if deal fails; notwithstanding whether valuation is above or below intrinsic. The author should then buy back the shares at the lower price and wait for price to rise based on future growth. 

In my opinion, a better strategy would be to sell put at the 60 plus strike and collect premiums while waiting for the outcome of the deal. If deal goes through, keep premiums. If deal does not go through and price revert to 60 plus levels, get assigned the shares. Either way would be a desired outcome for the author. 


Cheers.


Jiamu

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment