Merrill Lynch and Wachovia have completed their scheduled disappearance into the annals of brokerage and banking:
I still hold some uncovered short calls on both of these collapsed institutions. It remains to be seen whether the options will be erased or converted to options on Bank of America and Wells Fargo. These are all-stock deals, so I may see some legacy exposure. We shall see in the next few days.
Bank of America Corp. said Thursday it has completed its $19.4 billion all-stock purchase of Merrill Lynch & Co., while Wells Fargo & Co. said it has completed its $12.7 billion all-stock purchase of Wachovia Corp.
I still hold some uncovered short calls on both of these collapsed institutions. It remains to be seen whether the options will be erased or converted to options on Bank of America and Wells Fargo. These are all-stock deals, so I may see some legacy exposure. We shall see in the next few days.