On Sunday, for paid subs you got my thoughts on the
$MSFT /
$ATVI deal
I was bullish (still am) on it going through and provided a trade structure with a PUT hedge
Considered $77.50 strike, $1.75 premium @ 7/21 exp for imp vol gain
As of this morn, premium now $2.25 (Bid)
Granted I said that Cedar Grove Capital's long position in
$ATVI was at a much lower cost than when the CMA announced it didn't have a problem anymore with Call of Duty last month and that needed to be taken into consideration when structuring the trade
However, assuming net exposure @ ~0 with the same L-commons + PUT contract structure ATVI. Math works out below