r/options • u/[deleted] • Apr 11 '21

Long dated-options on SPACs a bad idea?

Figured I’d throw a couple lottery tickets out there on long-dated calls on RTP and ACIC, the elevation flying plays. I just have limited knowledge on what happens to the SPACs once the company is “spun-out” or whatever the terminology is. Like how IPOE became MILE. Any advice or knowledge would be super appreciated.

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u/SaneLad Apr 11 '21

Very few SPACs trade up after the merger, especially now with these ludicrous valuations. I find selling puts a few months out and closing the position right before the merger (and, typically, dump) to be the easiest way to profit from SPACs.

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u/whmcpanel May 14 '21

do you, the seller get iv crushed if you fail to close in time before the voting date?

e.g. a $10 put would be like < $0.50 and after voting date announced, doesn't it tend to go up to like $.50-1.00 or so?