Are you talking the old or new options? Old options are best addressed as your broker says. Easy method is per contract. It does not provide any premium calcs but I don't think one will receive any premium going forward since they are a subset of options. Easiest way is create an Excel table. I'll share mine and hope it isn't too confusing.
"$ VZ"______"$ VOD"
_($VZ cell)_($VOD cell)
"26 shares"_ =26 X (VZ cell)
_____________$527_____ (Although I see WChang calculated $542 cash, *options on 100 share lots)
"54 shares"_ =54 X (VOD cell)
"Total Sum" _(formula sum of all three/100)
That will give you the old value calculation per share to compare against the old strikes. Then build an additional chart below or beside that one reflecting strike(s) vs. the current market price produced by what I just posted above. Mine actually uses three different pricings and is five columns by 11 rows (although I don't use a couple rows with having 7 different strike prices).
__(blank)_____(blank)______(current market $)__(analyst median PT $)___(Takeover PT $)
(#of contracts)_(strike)____(=contractsXstrikeXabove cell)_same formula___same formula
repeat same line as above but make sure you reference the current market $ in third factor of formula
repeat same(7 more times or however many different strikes you need)
The sum X100 give you the $ value of each contract. Hope this isn't too messy when it posts and you can understand it. When you put in value for analyst PT and takeover PT you need to remember those figures should be on old VOD price. You can go back to the first chart though and play with the VZ and VOD entering the new share price targets to arrive at PT's in old share form. The blended VZ/VOD PT price I use for analysts PT is $45 while takeover is a finesse game that is real SWAG but is still in line with my old terminal value area of $50-55 with a bullseye of $53.
2.86Bshares + 1.27B shares X market price. Someone mentioned the share surge was part of a weighting rebalancing that was triggered today for VZ. Hence the surge in late day trade.
Ever get the feeling the selling pressure might be here as a bid is prepared? I expect a two to possibly a four dollar pricing collar just like the VZ/VOD deal occurred.
Please read a Financial Times piece titled "Vodafone powers best FTSE close since 1999". Within the piece T indicates EU possibility still in play and Nomura is referenced as well saying the debt markets still cheap and open which equals the window of opportunity is now. Keep in mind the Fed is tapering QE monthly and last meeting minutes some even discussed bumping interest rates. T has to move soon as rates will drive higher on the back of continued QE taper.
Sentiment: Strong Buy
His answer has been posted here repeatedly for days and weeks. There is a "search message boards" that could be of great use instead of everyone being lazy. ....just make sure you click on the "current board" tab when you are done putting in key search words.
This is just a bunch of garbage posting here. The nuts aren't going to bury the very key AT&T topics. I will keep pushing them back up to the top.
Sentiment: Strong Buy
It went from 2.89B to ~4.16B float after the deal closed Friday. There is not 5.5B. Do your homework and report back to us.
tiglet, you are the dope here. I was quoting your silly short basher. Note the quotations in my post. I argue the drop will be brief and end sooner than later. I'm handing him his head and giving him an education to boot.
You are indeed very misinformed. That float figure you just posted is before the new issue of 1.27B. 2.8B increased to 4B share float. Keep in mind they went from owning 55% of Verizon Wireless to 100% while only increasing float 44%. It could have nearly doubled the float with an all stock kind of deal. Financing was dirt cheap and why it was very important to get a deal done before the Fed kills off QE and starts to raise interest rates. Rare times in financial history that cheap financing caused M&A's to be immediately earnings accretive. The large cash flow gained will pay off the majority of new debt within 5 years. That is when this deal will REALLY pay off nicely for long term shareholders. VZ destined for a strong long term rise.
The share liquidation facility that was established is likely what you see flying across the volume screens in closing minutes and AH. The volume during the day was likely unhedged liquidations as well as some traders.
VOD does NOT own the VZ shares! The VZ shares were given to VOD shareholders in a special dividend along with ~$5 in cash. The balance of remaining cash paid by VZ is being retained by VOD as well as a minor stake in Vodafone Italia that was held by VZ. There was a share liquidation facility established for those VOD shareholders who wanted to dump their VZ shares. The facility looks to be moving everything through.
616,563,166 volume showing so far for VZ today with average of 33MM. Flow back hit real hard today.... Half the new shares issued traded hands. I'm sure there is a lot of day trading but that is crazy flow back volume.
Actually, it should be rather swift as there was a share liquidation facility for those who chose or were forced to sell due to the Euro fund limitations.
Google finance just updated as well as final settlements still piling through. Google showing 343MM while my TD Ameritrade is reflecting 435,123,088 as of this moment. This is in line (slightly over) with the expected 25% of VOD holders liquidating their new VZ shares from the deal.
10% accretive is after factoring the dividend expense...45% of VZ Wireless income is now retained instead of going to VOD and will pay for the cost of additional share dividends and respective buyout loan payments.
VOD is really up less than 2% today when you properly factor the return of value and the reverse split of 6 for 11. Should be up much more given VOD no longer has ownership in VZ which caused an antitrust issue for AT&T to make any possible takeover bid of VOD. Search "Vodafone powers best FTSE close since 1999". T says they are still positive for making a European market entry.
Sentiment: Strong Buy
Per the Financial Times, of the 1.27B shares issued, a quarter of the new issue was to be sold immediately. Roughly 317MM shares to be sold immediately, today the volume was 120M over the running average. VZ held up very well. Maybe another couple days of weakness before upside. Might make a test of 52 week low but it will be short lived IMHO. VZ on sale.....
Article is titled "Vodafone powers best FTSE close since 1999"
Comments along the line of T still positive on logic of entering Europe.
Nomura also quoted as saying the interest rate environment makes the opportunity window as right now.
Stable because it is hedging for the past six months being unwound by VOD shareholders who received the VZ stock after market close on Friday. Some small retail selling who didn't bother with a hedge. With earnings being accretive and positive news like Netflix signing a deal with Comcast (and indications one should expect a similar deal for VZ) there is upside to be recognized. Very good reasons why VZ was moved from hold to a buy by BAC. More analysts likely to follow.
You apparently didn't understand the full transaction when you stated "So what do you think Vodaphone is going to do with all that stock". Rather apparent you didn't understand the full transaction when VOD doesn't have any VZ shares as it was announce many months ago those shares were being passed on the VOD shareholders.
Those VOD shareholders who were building hedges the past six months for the stock they were to be receiving is what has kept VZ in this trading range you have enjoyed. The reason for hedging event is now complete. Yes, they are locking in their "gains" or really just selling out of their VZ shares. That is why we are in a big final turn of the collar. Collar is being removed. Transactions will wash. All that is going on right now is the VOD retailers who didn't bother with a hedge are selling. The rest of volume is the hedge being unwound. This collar is making its last, but large, final go round. There will no longer be the overhang of an impending flush of shares or that big of volume looking to hedge (which caused the collar trading). Glad you made money. Good luck going forward.