So I've been playing around with stocks for the last few years with about a grand in fun money I've long since lost any emotional attachment to. Largely just a video game at this point, though I've taken out like 200% profit overall largely from stupid stuff like Tesla lol. Lately I've been experimenting with buying calls and puts on a few stocks I follow, and trying to understand how those work.
Two of those calls was for MAXR at $35 on 4/21/2023. I bought 2 contracts at $1.10 about 2 months ago, and today they're each worth $17.60.
Maxar got bought by Advent International, and shareholders receive $53.00 a share. So MAXR is currently at $51.70. I kind of understand that each contract I own is good for buying 100 shares of MAXR at $35 until 4/21/2023, so now that the actual price is well above that number, my contracts are now “in the money”… Is that right? So now what? lol.
I also own some dozen shares in MAXR. What happens to my shares after this buyout? What happens to my call contracts after this buyout? Should I sell them or hang on to them? Does MAXR stop existing? Since I have two, I was thinking about at least selling one on Monday. 1700 bucks pays for the paint job my bumper needs.
Sorry if this isn't the right place to ask.
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