Does anyone know how the S option works now the merger is over? I bought 100 Aug 13 call with 7 strike for 11 cents each. How much should it worth now? I am totally confused. Given where the stock is traded ($6.28/share), that equates to $7.28 per share prior to the merger. So technically any $7 strike is in the money now?
yes u r in the money / the symbol on your option is now S1 and The strike prices remain unchanged. The only thing that changes is that in lieu of a right to buy 100 shares of stock at whatever strike price, you have the right to ($5.65 plus cash value of 0.1744 shares ($1.02) NS plus 26 shares of NS) for whatever strike price. Since there is less stock in the deliverable, you will need a more dramatic rise for your options to appreciate