Buy calls for the company that is being bought out. An example of this would be Metsera seeing a massive surge after it was bought out by Pfizer.
It depends on how you want to play it. The oil company that is buying the other company will see a small dip as they will be taking a bit of a hit spending a large amount of money acquiring the other company. However, this company would be a good long term investment if you believe in the supposed merger and think that it’ll be good for the future of the company.
Calls for the smaller company (company B) may pay off handsomely however risks exist such as the merger not going through. Not every deal works out unfortunately. Additionally after the deal is complete company B will be delisted shortly afterwards as it is now a part of company A. If the deal doesn’t go through then you may see losses or potentially no change in price, however you will then be introduced to theta.
Ultimately it’s up to how good the merger is for both companies. Be sure to look at the fine details, is it a good deal, does the smaller company benefit or is it a hostile takeover. Will the acquisition of company B steer investors away from company A? For example if it’s a shady deal, is company A undertaking debt from company B etc.
Hope this helps and I’m interested in what company you’re talking about.
you only added another 1.5 k to your already losing closing value of 1.5k by buying the same exact strike a day out instead of rolling closer to the mark
the title of this should b 3k in QQQ donations MM doms from their simp