Monday, July 14, 2008

Buy BUD (sell puts)

Buy BUD via selling the Aug 65 puts
Bud agrees to a takeover bid from InBev. There is always a chance that the takeover falls through, and some traders may be locking in some gains by buying some puts against long stock. The odds favor a stable share price, moving steadily up to 70. Deal expected to close by the end of 2008.

Positions: short RIMM, long BUD

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