Re: Etrade Potential Bankruptcy?
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if etrade gets bought out at 6 lets say, are my jan 7.50 calls worthless?
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It depends when and if a deal is announced and subsequentally closes.If it was announced TODAY...they would still have some temporary value of course,albiet very small,as they would still be $1.50 OOTM.But you would still have TIME on your hands(until late Jan.) before your options expire...or the deal closes(which more than likely would be later than Jan,)
The deal could even fall thru(if its a hostile T/O) due to shareholders/BOD feeling the comapany is worth more $$$.
If a white knight steps(Mer,Leh,whoever) up with a higher offer.... much higher OVER your strike price BEFORE the deal closes...your options would be ITM,and be worth whatever price range in relation to the "new takover deal"
What price are they trading now,in comparison to what price you bought them?
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