Night Writer: Nice call on TRV, however I feel your pain. I pulled it up on Dryfus just to look. What a nice day for allot of people. Please notice the open interest for the May 65 calls, prior to today, and the June 60 and 65's. Someone knew it was coming. A merger of that magnitude you can't keep a secret for long.
In any case, to answer your question, typically calls are exercised sooner if they are deep in the money or a merger appears to be firm. Movement into CPQ, at least between now and May 5th could be rewarding. Again I cite the earnings announcement, which might be better than expected, and the shareholders meeting with announcements on DEC. I could be wrong on both counts, but I placing my money on it.
Tomorrow, might be an interesting day which could put further pressure on CPQ. Traders kept it a 25. However, depending on tomorrow, it could slip a bit more. I maintain the $25 support level and invest at 22.5 for margin of error. Good luck tomorrow,
Mike |
