Trading Options in Mergers and Buyouts
Long options strategies haven’t produced attractive win rates historically, but in merger or buyout situations, such positions can produce significant profits.
Long options strategies haven’t produced attractive win rates historically, but in merger or buyout situations, such positions can produce significant profits.
Merger and acquisition (M&A) activity shrunk during the first half of 2020 by roughly 50% as compared to last year, but since July, the pace has picked up considerably. The uptick in activity was punctuated by two recent mega-deals—the acquisition of Arm Limited by Nvidia (NVDA) and the acquisition of Immunomedics (IMMU) by Gilead (GILD)—together … Continued