If there is a cash takeout, the IV will go down. If there is a share component t... | Hacker News

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		totalZero on Feb 7, 2021 \| parent \| context \| favorite \| on: Ford Makes $29B Commitment to Electric and Self-Dr... If there is a cash takeout, the IV will go down. If there is a share component to a hypothetical acquisition, the IV will potentially increase. However, I'm not sure how likely that is. Just be aware that your Vega p&l could be negative, so extremely long dated calls with a lot of Vega may need a big gap between a cash takeout price and spot in order to be profitable.

rlonn on Feb 7, 2021 | [–]

This reads like finance buzz bingo

totalZero on Feb 7, 2021 | | [–]

I'm just saying that long-dated calls can lose money in a cash acquisition.

friedman23 on Feb 7, 2021 | [–]

I'm already up 200% on my $150k bet. The IV was basically nothing a month ago.

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