Never been through a situation like this, where a company gets taken private. I still don't fully understand what is 100% locked in, what still needs to be voted on, etc., so bare with me.
But if the current deal is $54.20 then shareholders know that's what they're getting (again, assuming it's final). So, even if earnings are terrible, would it matter? Assuming it drops (and the deal does not change in any way), wouldn't people just buy it because they know they'll get bought out at 54.20?
Positions: long 55c jun 17, short 55c 5/6 (was a 57c originally), long 40p jun 17, short 38p 5/6.
Took the positions thinking news either way meant big movement, was not aware that taking a company private would mean options just evaporate lol. Got lucky on the initial run up a few weeks ago so this is essentially a net zero lesson.
Leave a Reply