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Linn Co, LLC Message Board

  • bluedreamdreamer bluedreamdreamer May 7, 2013 10:50 AM Flag

    How to "buy" LNCO for 35 via BRY options?

    I am looking at selling Nov 50 BRY puts, which sold for $6.2 today. If BRY closes under 50 when its acquisition by LINE is slated to close, does the seller of those Nov 50 options get straight put to all 100 shares? If so, that gives a BRY basis of 43.8 which means getting LNCO for 35.04 (after the 1.25 sh LNCo/sh BRY), a 10% discount to LNCO over its current selling price.

    I know in straight cash acquisitions, ALL options cease trading at close and only ITM options have value but i am uunclear if the same rule applies to share swap mergers like with LNCO/BRY

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