http://finance.yahoo.com/news/sherwin-williams-company-acquire-valspar-170000400.html Purchase price is 113 cash. Expected to close Jan '17 http://stockcharts.com/h-sc/ui?s=val Trade: VAL closed at 103.22 Oct 100/105 bull call spread for a net debit of $295 Price........... Profit / Loss....... ROI % 75.00.............. (295.00)........ -100.00% 85.00.............. (295.00)........ -100.00% 97.16.............. (295.00)........ -100.00% 100.00............ (295.00)........ -100.00% 102.95................. 0.00............. 0.00% 105.00.............. 205.00........... 69.49% 108.52.............. 205.00........... 69.49% 119.89.............. 205.00........... 69.49% 131.25.............. 205.00........... 69.49% Note 1 : Don't do this unless you are experienced in dealing with acquisitions Note 2 : Ordinarily I would want options dated to the expected deal close or beyond, but the Oct options are the furthest out available... the deal should be pretty well cooked by then. Note 3: Best filled at the open. Note 4: Note the 105 number related to divestitures.
http://finance.yahoo.com/news/sherwin-williams-valspar-11-3b-211809966.html http://news.morningstar.com/articlenet/article.aspx?id=746546&SR=Yahoo http://stockcharts.com/h-sc/ui?s=val New Trade: With VAL at 106.87 Oct 100/95 bull put spread for a net credit of $35 Yield = 35/465 = 7.5% in 197 days or 13.9% annualized Filled at $35