Hey, so you guessed it, this question pertains to the MSFT/ATVI acquisition. There is a sudden flurry of options trades going on, especially with recent news from the UK regulators.
I have $85 calls exp. Jan 2023, currently just ITM. MSFT has has offered $95/share to acquire. As I understand it, if the merger goes through, any remaining theta on contracts will essentially be worthless. Contracts will only have intrinsic value, as $95 will be the final share price.
But once (if) the merger is announced, and the share price jumps to $95, how difficult will it be to flip those contracts? Will I have to execute them myself? Will MSFT buy them outright at $10 per? Or would it be easier to just sell them now at a lesser gain?
My apologies if this is the wrong place to post this type of question! Not looking for advice, per se. I'm more seeking some insight on the procedures during this type of event.
Cheers
[link] [comments] https://www.reddit.com/r/stocks/comments/120yho0/question_about_outstanding_options_contracts/
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