RE: RE:options premiums Thanks, linus. Of course, it is clear that options will not lose their time value until the deal is finalized. However, I cannot understand why July puts are so expensive, and why anybody would buy those puts at these prices (looking at the open interest, it does not look like some viable spread is implemented - unless I am missing something). If someone is long the shares and is afraid that the deal may not go through, he would not pay $.75 insurance for $.23 maximum gain. So, the only reasonable explanation is that someone knows that the deal will not go through or at least is willing to bet on it.. so someone might be establishing a synthetic short position. The only good news is that 70 contracts is really nothing at these prices - if it was someone big who knew something, we'd probably see many thousands contracts traded.
At the same time, does anybody know the rules for market makers? Is it possible that they are the ones buying these options because they have to make the market? Wouldn't it feel nice to actually make MM buy something despite their wishes? :) (somehow I do not think that it's ever possible.. little schmucks like us are not likely to win while playing with the big boys :)