Great post. I'm looking into it and my thoughts are that this could be played via options buying puts of Tapestry, as the stock has recovered after the initial negative reaction once the deal once announced. The idea is that TPR would fall again if the deal is approved by the FTC. This approach would benefit from lower implied volatility in Tapestry than Capri, while providing a free hedge on a macro slowdown. In case of sticking to Capri, I would sell puts short term, using the proceeds to purchase calls expiring in August.
can the deal be extended?
Great post. I'm looking into it and my thoughts are that this could be played via options buying puts of Tapestry, as the stock has recovered after the initial negative reaction once the deal once announced. The idea is that TPR would fall again if the deal is approved by the FTC. This approach would benefit from lower implied volatility in Tapestry than Capri, while providing a free hedge on a macro slowdown. In case of sticking to Capri, I would sell puts short term, using the proceeds to purchase calls expiring in August.