Maybe calls on ROG once it finds its bottom due to a drastic crash after acquisition was called off. Looking for help to research. DD deal was canceled to buy ROG. Price for acquisition was $227 a year ago. It dropped to $130 in pre market from news. This is in my opinion too much of a drop and calls could pay here. Lets review this play please. Support around 120/125 for ROG was around $180 when acquisition was announced. 120-140 might be fair range if it dropped like all similar stocks to get back to that 2020 price. They also have earnings coming up or maybe they didnt announce because of the deal. Last earnings was on 8-3-22 and was ok.DD calls could be the better play here too because it freed up this cash for the deal too.
Similarly this might be bullish for DD because of the cost of the deal.
ROG and DD announced they scraped buyout deal ROG took 40+ percent drop on the news were trading around 190 before the news. Valuation of buyout was 220 plus per share
Too big of drop for ROG and bullish for DD on dollars savings.
Looking at cheap fills on ROG 140c 145c monthlies only
Couple notes that we talked about on the floor:
- The OI for ROG is pretty god awful and the bid/ask spread isn’t great
- DD is more appealing as a bullish target as they have better spreads, but they’re also sitting right at support right now
- If DD breaks its $62 support it looks like blue skies up to $68
Before we start today, should look at previous closing’s options as that could reflect what we see at open. ITM November calls have absolutely insane spreads. Mostly due to the low amount of OI on the chain. This includes all expirations (as far as Webull presents).
I’d only say this is a play depending on the amount of volume that options have and their premiums at open. Though playing throughout the entire day or into next day could have larger risks due to the spread and volatility we at 9:30. My impression is the price of calls might be cheapened due to such a sharp drop, but hard to tell since $130 strikes exist on the chain, but were defunct.
I think this drop is an over reaction. Calls are definitely a play here. Deal wasn’t ended due to any thing wrong with ROG per se but due to “Timely Clearance” from regulators more specifically from China’s state administration for market regulation. I’m expecting Dupont to make another offer at some point in the future.
Support for DD I am seeing 58/60 too for possible calls.
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