ARR/Sun - Well at $21, if you sell the April $20 puts for $2 and the April $21 calls for $1 you net in for $17/18.50, which is lower than the low (so far) and they pay you 0.33 in Oct, Nov, Dec, Jan, Feb, March and April is $2.31, which is another 13.5% in 7 months while you wait to see if you get called away with another $4 (24%) gain. If not out with +37.5% (5% per month), then you net into 2x at $16.19, which is 23% below the current price so yep, I still like it as a new trade!
Meanwhile, how shameful is it that BHI is at $54 when HAL is at $37.32? The offer for BHI is 1.12 shares of HAL ($41.79 at current price) + $19 in cash is over $60, not $54 and that's with both companies down in the dumps at the moment.
Baker Hughes
The company agreed almost a year ago to the friendly merger with fellow oil-field giant Halliburton in a deal worth an astounding $34.6 billion. The tie-up between the two oil-field giants raised big questions about whether the takeover could survive antitrust scrutiny, given the level of consolidation that it promises within the oil production services business. Created in 1987 with the merger of Baker International and the Hughes Tool company, the company created innovative products like a rotary bit for drilling wells through rock.
The long wait to get the deal done with Halliburton may be starting to grind on some, but the merger agreement does allow the two companies to extend the deal into 2016. The UBS team still thinks that there is a 90% chance the deal is completed, and while Halliburton has maintained it will close this year, they see a 2016 close more likely.
