How to spot a takeover target...

Discussion in 'Options' started by Cabin1111, Apr 24, 2024.

  1. I have a general idea...I did read this https://www.investopedia.com/articles/stocks/07/takeover_target.asp

    Just wondering if there are little secrets you can see (in option volume or volatility) that would point to a possible buyout/takeover??

    Do you look for leaps that are relatively high, way out of the money?

    Could you name a couple that you (or the market) is eyeballing?

    Just a couple of sentences of your thought process if you would...

    The reason I ask is Boston Scientific (BSX). They had good earning, good market share, no major recalls, products that can be used around the world.

    I was thinking of doing some covered calls (leaps) way out of the money...For some small income. Then I started thinking...Could they be??
     
  2. 2rosy

    2rosy

    if a big player is giving up edge lifting offers maybe something is brewing. Or opportunities elsewhere is even better
     
  3. Look for unusual CEO's private jet's itineraries.
     
    vanzandt and wxytrader like this.
  4. All that and look at price action...long and low with spikes could be a hostile take over in the works.
     
  5. wartrace

    wartrace

    Waste of time. A man can only do so much and the analysis and this isn't a game for individual traders. If you have a staff, maybe.
     
  6. vanzandt

    vanzandt

    Lol... I have always said if I was some geek working in system ops or whatever at Verizon or ATT and I had access to where a certain phone was at a certain time.... I wouldn't be working there for long, because I'd be retiring very young and very wealthy.:cool:

    And... you can bet certain Whale operations... have already figured that out, and they have insiders on the take doing just that. A briefcase with $500K cash in it given to a lackey that makes $100K/year is a small price to pay for info that can yield 100's of millions over time.
     
  7. Just a quick thought...I own stock in Royce Value Trust (RVT). They look for small companies with good balance sheets. They look for companies where management is NOT over paid. I have bought some of these companies over the years...These companies have became buy out candidates. Royce did the work for me...
     
  8. Jack1960

    Jack1960

    Buyouts make a lot of money for investors. I just subscribe to The Arora Report. 193 of Arora portfolio companies have been bought out. This is great source of profits.
     
    vanzandt likes this.
  9. Go to high end female hair salon. Gossip with hair stylist.