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Mergerarbitrage

ATVI Spike (Merger Arbitrage Continued)This morning I received a Spike Alert for price volatility at the open on Activision Blizzard NASDAQ:ATVI . Perhaps people are excited about Wrath of the Lich King classic being released? :D This swing trade occurs within the context of the Merger Arbitrage trade which has been going on for many months since Microsoft announced an offer of $95/share to purchase ATVI. There has been much rumor and speculation as always on if this deal would go through which manifests itself in a present 20.6% risk premium from the current trading price of ATVI to the buyout price. Nothing has fundamentally changed since the board approved the deal. Warren Buffett is also in the merger arbitrage trade with a 9.5% stake in ATVI. I am already long the merger arbitrage trade from earlier in the year. Note: Getting into it now would be less than 12 months til the expected buyout which would mean a successful trade would incurr short term capital gains rather than long term. GLHF!
NASDAQ:ATVILong
by norok
1
PFE: Triangle break!Pfizer Short Term - We look to Sell at 50.48 (stop at 52.47) Our outlook is bearish. Broken out of the triangle formation to the downside. This is negative for sentiment and the downtrend has potential to return. Further downside is expected although we prefer to sell into rallies close to the 51.00 level. Our profit targets will be 45.49 and 42.00 Resistance: 50.00 / 54.00 / 62.00 Support: 45.00 / 40.00 / 34.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NYSE:PFEShort
by VantageMarkets
$TWTR: Board approved the merger...Now that the board unanimously approved the merger, and the broad market is staging a relief rally or even a bottom, as inflation being under control potentially sets the stage for the Fed to pivot and stop hiking (at least this is what the market might be pricing in), $TWTR offers a good reward to risk entry to go long and pull off a merger arb trade here. Upside capped at $54.2 or lower if Elon bids less for the company after reviewing the real time data he obtained recently. Technicals and broad market risk improved substantially to revisit this idea and go long. Good luck, Cheers. Ivan Labrie.
NYSE:TWTRLong
by IvanLabrie
2
Microsoft ATVI Merger Arbitragewww.engadget.com Microsoft just made one of the largest-ever bids for a game studio. The company has announced plans to acquire Activision Blizzard for $95 per share, valuing the all-cash deal at an enormous $68.7 billion. The deal would make the combined entity the "third-largest" game company by revenue, according to Microsoft, and would put titles like Call of Duty, World of Warcraft and Candy Crush under the company's wing. Microsoft plans to add Activision Blizzard games to Game Pass as part of the deal. ... The buyout is expected to close sometime in Microsoft's fiscal 2023 (no later than June 2023) if regulators and Activision Blizzard shareholders greenlight the move. The boards of directors for both companies have already approved the deal. Activision Blizzard NASDAQ:ATVI stock has been hammered off its 2021 high amid scandals and the broader tech selloff. I've been an avid gamer and fanboy of Blizzard IP since I was a kid but I'll put all that aside and just look at this from the standpoint of a merger arbitrage opportunity. What is a merger arbitrage? It is a trade that is a bet that the deal will go through as planned and the investor will be paid the final price of the shares. Microsoft announced that they will buy out all shares of ATVI for $95/share at the closing of the deal June 2023 at the latest. That means on the closing of the buyout every outstanding share will be purchased. If you have shares of ATVI now or buy them before the closing you will be bought out of them for $95. That is true if the deal goes through. So the trade is that the deal will go through without any problems and any shares will be worth $95 at closing. At the current share price as of writing (89.92) that presents about a 16% premium. The question a trader should ask; "Am I will to accept a return on my capital of 16% over 18 months... with the risk that the deal may not be approved by regulators or shareholders?"
NASDAQ:ATVILong
by norok
41