Buying puts on ARG?

Discussion in 'Options' started by LCFXTRADER, Feb 18, 2010.

  1. Anybody buying puts on ARG? Just looking to fade the hugh gap up. Bought 50 put contracts for MAR $60 strike.
     
  2. NoDoji

    NoDoji

    What is the reasoning behind this trade? Won't it take a while for APD to present their offer to the ARG shareholders? In the meantime, won't the price of the stock stay at least at $60 and the puts expire worthless? I know nothing about these kinds of things when an offer is made for a company, but it seems like a pretty low probability trade with only a month until expiration.
     
  3. Sell 65 calls against 70 - aprils are providing a spread of about .75 if you don't think they will modify their offer.


    NYCDT