Hi all,
I beg to differ. If Musk's plan goes ahead, $420 would be the floor, not the ceiling, before shares are taken off the trading. It is the minimum exit value for shareholders, which will be paid cash by Tesla's funders to those who want out without going private. If deal is confirmed, the stock will align to $420 straight away after announcement. On the day of the go-private deal, all outstanding shares would have to be de-listed, hence the 35 million additional shorted (borrowed) shares currently floating would need to be given back, which short sellers would need to find in a then illiquid market. This could drive $TSLA in the 000s for a few hours / days. Short squeeze engineering by Elon Musk. I think that's exactly what he's planned, but I may well be wrong.
So, while it is true that out-of-the-money calls are now low in value, that's because the market does not believe what's happening, and also many misunderstand and think that really $420 is a ceiling (I actually did so too when I read Musk on Tuesday, then realised the masterpiece plan). In summary, cheap call options could be worth a ton of money on a short-squeeze day, ahead of de-listing.
Hope this helps. You can find my article on this subject on my blog, but also on Cleantechnica and InsideEVs. I won't provide links in case that's bad etiquette!
Cheers