Waiting for "The Event" which may happen soon. BTW whatever happened to that TV show with the same name.
I hope this doesn't end up like DNDN after their approval. From a high of 57 back down to 2.
My Scottrade quotes shows no open interest. However, Yahoo does show 1479 Aug 40 puts for open interest. The volume for today for this put was 101. The last price was 4.20 for an intrinsic value of just 1.60 Way too much to pay for time premium. However, you could be looking at a possible $10 move by expiration.
Not only was there no option volume for today, but there is no open interest at all.
I am thinking of getting some tomorrow. The bid/ask spreads are rather wide for the ITM options. Put spreads may be the best way to play this.
How much do you think the IV crush right after earnings will affect the price of this option?
I am looking at some call spreads. Their advantage is that the amount paid for time premium is minimal.
With MNKD at 8.07, I was looking at some option plays which would have minimal drawdown in the event of further share price decline.
The Jan2016, 5.00/10.00 call spread for a debit of around 1.85
This would give you an effective share price of $6.85
Max profit would be 170%
The Jan2016 10.00/20.00 call spread for a debit of around 1.58
Max profit would be 533%
I am holding some Jan2015, 35/50 call spreads which I had bought for 2.05 as disaster insurance in case the market were to collapse.
Since the general meeting of shareholders will be held at 9:00 a.m. on July 31 Shanghai time, this corresponds to 9:00 PM EDT on July 30.
This is will probably be the most important meeting for this company, since it will no longer exist if the merger is approved. What is surprising is that there is no mention of this meeting on the Montage website.
The current share price is 21.58
If the cash settlement price is 22.60, this would give shareholders a profit of $1
It appears that the shares should be trading closer to 22.60
Is this $1 discrepancy in price due to the possibility that the merger may not go through?
Anyone notice Friday's 2,000 option volume for each of the Oct 80.00 calls and the Oct 50.00 puts?
Did someone do a straddle? With the possibility of increased volatility and price movement, this looks like a good strategy.
TO: ALL CLEARING MEMBERS
DATE: JULY 22, 2014
SUBJECT: MONTAGE TECHNOLOGY GROUP LTD. – ANTICIPATED CASH SETTLEMENT
OPTION SYMBOL: MONT
On July 31, 2014, Shareholders of Montage Technology Group Ltd. (MONT) will vote concerning the proposed merger with a wholly-owned subsidiary of Shanghai Pudong Science and Technology Investment Co., Ltd. If the merger is approved and consummated, each existing MONT Common Share will be converted into the right to receive $22.60 net cash per share, less withholdings, if any.
DATE: Effective the opening of the business day after the merger is consummated.
PER CONTRACT: $2,260.00 Cash ($22.60 x 100), less withholdings, if any
Settlement in MONT options will take place through OCC’s cash settlement system. Settlement will be accomplished by payment of the difference between the extended strike amount and the cash deliverable.
ACCELERATION OF EXPIRATIONS
Pursuant to OCC Rule 807, equity stock option contracts whose deliverables are adjusted to call for cash-only delivery will be subject to an acceleration of the expiration dates for outstanding option series (See OCC Information Memo 23988).
I bought some Aug 655/635 bear put spreads for a debit of 5.70
These should give me some time for a price movement. I like spreads because draw down will be minimal if it continues to rise.
The Gov needs to shut down the websites which are selling these drugs. I guess they will have to go after the website hosts next and charge them for being in collusion with the sellers of these drugs?