Leaps

[kkozkkoz]

I own some 40 strike calls for January.  If the deal is voted yes in September, would I have to exercise these in September or could I wait until January and then get the CVR at that time?

[Putncalls]

You will have to exercise them before the CRP date (TBD). That will probably be about the time the cash is paid.

[katytrader]

I own some 40 strike calls for January.  If the deal is voted yes in September, would I have to exercise these in September or could I wait until January and then get the CVR at that time?

  I believe in this kind of situation the January options will have the expiration date advanced, date yet to be determined.  I would think that you would need to be careful to ensure ownership of the IOC shares to conform to the requirement for the share exchange, but the options clearing house might force you do that properly  by its choice for the new expiration date.

[Stavros]

That makes no sense to me Putz.

If the deal is accepted by IOC Shareholders in September, IOC shares will cease to exist on the Effective Date.
The IOC shares held in our accounts will disappear on the effective date and XOM shares will appear.
There will no longer be a market for IOC shares after the Effective Date.

At the same time, we will be given one CRP per share of IOC . . . but the CRP will not be tradable and will have no value

The CRP will be paid in mid 2017.

[Putncalls]

From what I have been told: If one wants the CRPs one has to hold the shares on the "Effective Date"
1 CRP + 45$/IOC share paid in XOM stock on that "effective Date", which is probably better than cash.

[wapitidropiti]

From what I have been told: If one wants the CRPs one has to hold the shares on the "Effective Date" 1 CRP + 45$/IOC share paid in XOM stock on that "effective Date", which is probably better than cash.

I hope that your assessment is correct. To have all proceeds paid in XOM stock is just right except for the amount which is light by $25/share.

[sageo]

From what I have been told: If one wants the CRPs one has to hold the shares on the "Effective Date" 1 CRP + 45$/IOC share paid in XOM stock on that "effective Date", which is probably better than cash.

I hope that your assessment is correct. To have all proceeds paid in XOM stock is just right except for the amount which is light by $25/share.

Wapi - Thanks for your "lightness amount" .Comes a little closer to the real value .