Walgreens News Effect on Options

Discussion in 'Options' started by Arnie Guitar, Mar 7, 2025.

  1. Shareholders to receive $11.45, deal to be done around the end of the year.

    So the stock will go to $11.45 and sit there and options will have no premium?

    I've been laddering/leapfrogging/call it what you want 500 WBA for quite some time.

    All Calls are ITM.

    Will options continue to be traded?
     
  2. spy

    spy

    The agreement is definitive, but it's not a "done deal". So, there's still going to be action. Exactly how much? Wish I knew!
     
  3. mervyn

    mervyn

    yes but not much volume because the price is capped and not much volatility. if you are itm, you will be cashed out
     
  4. Huge disaster for long straddles/strangles holders...

    "Reporting" in 4/11 expiration week and usually implied straddle is around 14%.

    And now a total vols crash without significant price movement.

    WBA was on my watch list for earnings play, but I was lucky not to enter.
     
  5. mervyn

    mervyn

    not if the shareholders downvote the deal.
     
  6. mervyn

    mervyn

    don’t do vol trades in consumer sector, not paying much.
     
  7. spy

    spy

    Exactly... like I said, it's not a "done deal". In addition there's a "go-shop" period where they may get a better offer. So re-read what I wrote: there's still going to be action. Were you drinking earlier by any chance?

    (-: