I have some in the money calls that have lost most of the time premium, but I'm holding for a few days to see if anything happens with the offer. What happens to the options if I don't execute the call or sell them before the deal closes?
My understanding of CVR's is that I have to own the shares of the company, but on what date do I have to own the shares? How will I know when that date is?
after the option strike expiry date, and if you are in the money, you get assigned the shares at a par value of 0001 at the strike price + whatever the premium is worth at expiry. your cost basis is then the in the money strike price plus original premium you paid.. so if you are 12.50 calls, your cost basis is 12.50 plus original premium (say 1.40) = 13.90 to break even. follow?