Big announcement from the company after the close today--the board just rejected the CEO's lowball offer, and the stock's up ~13% after hours. Let's see how that impacts the options market tomorrow, and then I'll post targets here.
Okay, I'm opening a GTC limit order to sell half of the ZIM calls at $5.25, and plan on selling both calls for the best price I can get as we approach expiration.
Over the weekend, ZIM announced it agreed to be acquired by Hapag-Lloyd for $35/share in cash. ZIM closed at €26 in Frankfurt today, which works out to about $31 at current exchange rates, but we don’t yet know where it will open in New York tomorrow. In light of this, I’m cancelling my standing limit sell order at $5.50 on half of our April 17th, 2026 $20 calls and replacing it with a GTC limit sell order at $14.50 on both calls. My plan is to walk that limit down toward the market price tomorrow once we see where ZIM is actually trading, and I’d be content exiting around $11 per contract given the time frames involved (these calls expire in April, while the deal isn’t expected to close until later in the year). Since we effectively own these calls at about $1.80 each after closing the put spread in January, an exit in that neighborhood would work out to roughly a 500% gain on this trade in 2 months and change.
By the time I saw this alert and entered orders, USAR and SNDK had moved beyond the max price. Should these remain day orders or is there a duration they could remain open like ZIM?
Out of the first half of the USAR calls at $10 today.
Setting a GTC limit sell price of $17 on the second half of the USAR calls.
Out of the SNDK call spread today at $16.
Out of the SNDK put spread today at $0.20.
Out of the ZIM put spread today at $0.20.
When should we expect a price target for the ZIM calls?
Big announcement from the company after the close today--the board just rejected the CEO's lowball offer, and the stock's up ~13% after hours. Let's see how that impacts the options market tomorrow, and then I'll post targets here.
Okay, I'm opening a GTC limit order to sell half of the ZIM calls at $5.25, and plan on selling both calls for the best price I can get as we approach expiration.
Over the weekend, ZIM announced it agreed to be acquired by Hapag-Lloyd for $35/share in cash. ZIM closed at €26 in Frankfurt today, which works out to about $31 at current exchange rates, but we don’t yet know where it will open in New York tomorrow. In light of this, I’m cancelling my standing limit sell order at $5.50 on half of our April 17th, 2026 $20 calls and replacing it with a GTC limit sell order at $14.50 on both calls. My plan is to walk that limit down toward the market price tomorrow once we see where ZIM is actually trading, and I’d be content exiting around $11 per contract given the time frames involved (these calls expire in April, while the deal isn’t expected to close until later in the year). Since we effectively own these calls at about $1.80 each after closing the put spread in January, an exit in that neighborhood would work out to roughly a 500% gain on this trade in 2 months and change.
By the time I saw this alert and entered orders, USAR and SNDK had moved beyond the max price. Should these remain day orders or is there a duration they could remain open like ZIM?
I would keep them as day orders, since they’re PA top names. You can always enter another order on them if they end up in the top ten again.