Activision Put (MSFT all cash buy out). Sacrificed TSLA Put.
Sold 5x contracts of ATVI put at strike price of 90. Microsoft to buy ATVI in an all cash deal at 95 dollars. Price of ATVI hovers around 80++ yesterday as it is not a 100% sure deal scenario. Thus worst case scenario is deal being called off (very unlikely as msft is involved and their records of buying company were very consistent.
SP of 90 was carefully selected. This gave me a breakeven price of 80. In an unlikely event of a burst deal, 80 is a very decent price for ATVI.
For the margin, had to close TSLA 1 year put. Its already 1.5 in the money. Left 3.5k to go. I'm willing to let go this 3.5k and attempt to use ATVI to get 5k instead. Hopefully the deal can officially close by mid 2022 and I can lock the the profit. Might close early if the premium crashed.