CEPH options way out of the money

CEPH options way out of the money

On Wednesday, CEPH acquired capped call options from SBC Warburg covering 2.5 million common shares at strike prices of $21.50. The options have a six-month term. The drop places the options $8.50 out of the money. When the option deal with Warburg was announced, the stock was trading at about $19.375.

The downside is that CEPH spent 490,000 common shares to pay for the options in anticipation of participating in upticks in the stock. The options have a cap price

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