Thu, Aug 21, 2014, 9:16 AM EDT - U.S. Markets open in 14 mins.

Recent

% | $
Quotes you view appear here for quick access.

Nexen Inc. Message Board

  • trentkelp trentkelp Dec 7, 2012 10:45 PM Flag

    SO what do I do with my March $27.00 Options?

    What do I do with them now? Thanks for your help!

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Without knowing more (eg, the price you paid for the options, your appetite for risk, etc.) and assuming these are call options, I'd probably advise selling them. At the after-hours price of $27, much of the buyout price is already in the stock and should be reflected in the options. I think it's a mistake to get greedy and shoot for the maximum possible gain; you don't have to hit a home run every time you're at bat in order to win the game. Moreover, there's always the possibility that the deal could be delayed in a way that makes investors nervous, or fall apart altogether.

      Remember a few years back when Microsoft made an offer for Yahoo? I'm not saying that it was a done deal, but Yahoo's stock price zoomed up. Of course the deal never happened and the stock price eventually collapsed and today trades around it's pre-offer level. Those who took profits - without trying to squeeze every possible dime out of the situation - probably made out well. Those who held on (maybe in hopes of a better offer or trying to get to the offer price), were left holding the bag.

      In short, I'm not sure it will be worth it hang on to the options (much, of course, may depend on how they're priced), but I would be looking to sell come Monday morning.

    • they will be worth 50 cents if you do nothing....that's what I suggest. if you sell on Monday you will probably get 40-45 cents

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.