So you are one of "them arbitrators" guys who bought SHVA after the INTC announcement. Correct me if I am wrong, but 6 - 5 19/32 = 13/32 = 40 cents, which gives you less than 8 percent gain.
Indeed, I am one of those arbiters. I sold covered Feb 7.5 calls at 1/8, too, so add 0.125 cents to the difference for about 9.5% gain. That gain is for a few months wait (I thought it'd be shorter, to tell you the truth). I didn't like (and still don't like) the way the market looks, so I figured it was a pretty 'sure thing' to do with my money for a few months. It's not my typical style, to be sure.
Are you in this business because of the "sure" nature of your gain? What would you do if the deal does not go through?
I'd call this a pretty safe bet. The worst that could happen would be Intel pulling out, but I think with all the pent up good press, the stock would eventually go up (and I would regret selling the calls). To tell you the truth, I'm going to vote against the merger on my proxy for that very reason. I'm ultimately on your side. :)
Steve |
