Stock Markets Exposed
Trading Stocks?
Suppose a company maybe bought out. The share price is say 30. The buyout will come at 40. You want to be call option in January cause the merger will be done in the fall. You buy 30 contracts or the right to 3000 shares? Then strike the options after the merger is announced. So you strike the options at 10 per share profit aka 30 grand right? Isnt the best way to play a takeover stratgey? Obiosuly minus the cost to buy the options say roughly around 3000 for the calls. And lets assume I have heard something. I just am not sure the right way to plus the strategy out rightly.
Public Comments
- always buy long and sell short tht helps u can try puts and calls or use the butterfly
