Need help with an active speculative position

[femape 10]

Hi there,
I'll appreciate if somebody can help me to decide if go out or keep in an active Bullish position: OCR Dec18'15 95 Call. I never experienced yet a merge and that is why I need some help.
It results that OCR may be absorbed @18Aug by Tree Merger Sub, Inc (subsidiary of CVS Pharmacy, Inc). actually this is the information that I have:

 

On August 18, 2015, Shareholders of Omnicare, Inc. (OCR) will vote concerning the proposed merger
with Tree Merger Sub, Inc., a wholly-owned subsidiary of CVS Pharmacy, Inc. If the merger is approved
and consummated, each existing OCR Common Share will be converted into the right to receive $98.00
net cash per share.
 

 

Then my question is, should I keep it or should I move out?

 

Thank you in advance!

[Edwin 63]

There is no right or wrong answer.  If the deal were to fall through, then you'll lose.  I guess it would depend on how many calls you bought.  If it were me and I bought 10 calls, I would take profit on the majority of them, and let a few ride.  That way, you lock in the majority of the profit, and let a few ride if the merger is approved, and still get some upside, and not lose all of your profits if something were go to wrong.

[femape 10]

There is no right or wrong answer.  If the deal were to fall through, then you'll lose.  I guess it would depend on how many calls you bought.  If it were me and I bought 10 calls, I would take profit on the majority of them, and let a few ride.  That way, you lock in the majority of the profit, and let a few ride if the merger is approved, and still get some upside, and not lose all of your profits if something were go to wrong.

 

Thanks,

actually I have only one call because it was just a try. I have almost nothing of Profit at the moment, but is not a loosing trade. What do you think? Should I go out?

[Guest Peter]

@ fededito

 

I can not make a decision for you. But look at what the experts by Zacks and FinViz say. It does not look good.

 

http://www.zacks.com/stock/quote/OCR?q=ocr

 

http://elite.finviz.com/quote.ashx?t=OCR&ty=c&ta=0&p=w

[Edwin 63]

If it's one call, I would get out, unless you want to risk everything you paid for the call.

[femape 10]

Thank you both,
I did get out at Friday, I didn't want to risk worthless