Price expectations
Assumption: deal will be announced before Dec. 20
There is a large space of reasonably possible share price scenarios, keeping in mind unfolding events.
A simple case:
110 a day after deal announced
125 by mid January
150 by mid March
200+ by January 1, 2015
A range case:
105-115 a day after deal announced
120-135 by mid January
140-170 by mid March
200-250 by January 1, 2015
Comments about these range suggestions?
For a given range expectation, how to play this with options? It would appear that it would be wise now to plan to buy and sell options on the way up, rather than taking a static position with an expectation of holding until expiration.
(My view is that I have never, in several decades of investing, seen a better opportunity to make money with options. I started a few weeks ago, with obviously spectacular results so far. I lost with October options, but with spectacular results for December options. I decided to skip Nov. options when a deal wasn’t announced before the end of October.)