I apologize if it is already mentioned before. What happens to Out-Of-The money call options of SCTY if the deal goes through? I believe someone posted a link to a detailed OIC article on it.
All cash deal is simple to understand as options with strike price above offer price become worthless. However, what we have here is an all stock deal at 0.11 convertion rate.
For example, SCTY $35 Jan'2018 call option is out of the money. So, a holder of 1 SCTY contract (100 options), should get 11 TSLA Jan'2018 call options at $318.18 strike price. Is that right?
Math:
100 * 0.11 = 11 options;
$35/0.11 = $318.18 adjusted strike price.