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NEW – Update

Published on March 13, 2007

NEW – Update

March 13, 2007

Greetings from India, quite heavy snowfall in the Northern region (Jammu & Kashmir) that drifted mercury several notches lower. The weather is even more pleasant. I am just loving it. 

Since NEW didn’t trade yesterday and I don’t know when will it start trading, so I checked out with my brokers and here is the answer-

  • If it is delisted, then share value will be considered “0” and I will get to keep full $5 value for my long $5 March Puts (That I bougt for roughly $1.00). There will still be options trading market to transact.
  • If it annouces Bankruptcy, then same as above.
  • If it starts to trade, the value will be determined based on whatever price it trades. This is likely the scenario as March options need to be closed before expiraton so very highly likely that NEW will trade sometime this week.
  • The only scenario where I see possibilty of loss is if NEW is acquired by someone for more than $5/share. Unlikely.

This is options expiration week and Adam of Daily options is covering how you can benefit from pinning actions. Check out Adam’s blog from “OP’s Hall of fame” link. Also check out my past posts to profit from this event. 

Come and Join OptionPundit’s Agloco network.

3 Comments

  • Avatar YukTrader says:

    More likely is $5 for the whole company.
    Is LEND next?
    And then who?
    WM?

  • Avatar matt says:

    Well, it was delisted and the options are definately trading…. Your broker must have been uninformed because the 5’s are trading at 3.30….

  • Avatar OptionPundit says:

    matt, it delisted but again listed as well. It is now trading under a new symbol called NEWC and the options are trading at around $3.70 because the stock is trading at around 1.20-1.30.

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