The odds are very good that the Alba acquisition gets done soon, yet the premium on the December and January calls seems quite reasonable. The stock is at $6.15 but a January $5.00 call is $1.40 ask, which makes the premium only 25 cents per share. If we get a two or even one dollar pop on the news, the options could be a great buy. Other than the risk of delay or the deal not happening, of course there is market risk on the price of oil and the overall market, but the odds are looking reasonable. What else am I missing? Thanks.
I went for the mar 13's in the money 5$ calls, paid a .30 prem to current stock price
rochelle online adds 7000boe a day
north sea closed adds 2500-3000 barrel of oil a day
third alba well online net 1500-2500 barrels of oil a day
fiscal cliff dealt deal, market stabilized
bank debt reworked, increases cash flow