I wouldn't be worried about the 10 $ calls now . Evans is not selling his company for 8.5 $ as he mentioned that 20 $ would be a price he would considering selling on CNBC.
Personally i am buying the 7.5 $ calls.
Good luck to you all
Based on my understanding, $0.00. If your options fall to hit the strike price, you loose everything. I learned that lesson the hard way when my 500 calls for the Jan 2012 $10 Bank of America expired. I am not sure if they pro rate them if a buyout comes in below strike and remote from the strike date. I would recommend buying deep in the money calls which lessen your changes of losing everything. That's why I own the Jan 2013 $5 calls. Great question... in short... I don't know!
i went for the jan 13 $10 calls months ago; question for you because I'm almost certain MHR will be taken out before expiry.
Let's say they get bought out for, let's say $8.50. Does that render my $10 calls worthless .....I just never, shame on me, put hat in the equation as a possibility.
All of these domestic oil producers are in play now... play them all with options. One thing I did learn from Cramer is to buy the deep in the money calls and be patient! I have loaded up on the Jan 2013 $5 calls. Already up 20%! If MHR goes as we project, I'll be up 300% for a very Merry Christmas!
the worst this about cramer is that he now gets a free ride pimping MHR. not because he is smart, but because the ceo had to actually go to cnbc to explain the story to cramer. days prior he was saying it was too risky and that is because he does not know ho to value oil and gas companies or even how to value hard assets of these types of companies.
unfort for the general public this will make him look good and only result in the general public losing $$ on all the horrible calls he makes. very unfortunate.
MHR should be $14 imo based on the sum of the parts valuation i posted last oct/nov. I might need to bump that up based on the recent asset purchase and higher production levels. i'll wait until the 10q is released, but my guess is that the sum of the part value will be pushed up towards $17.5 for year end.
Sooz, he touts his ability to have a mastery of most ALL publicly-traded equities and, of course, when first asked about MHR he was ignorant. I suppose you can give him credit for seeking out a bit more knowledge, so that now we have a cheerleader in place of the old ignorant buffoon. So we should be grateful for that, eh? :-)
But then again, we get people coming through the White house who regularly do the same thing...some more, some less.......