NOTE: SHAW announced it is being acquired today.

We are lookin to close the SHAW 27/29 call spread for a NET DEBIT $2.00 today.

Hopefully, you can split the BID/ASK and close for $2.00 NET DEBIT, but ultimately we have to close the position

Acquisition particulars.

Tripp Levy PLLC, a leading national securities law firm, announces that it has been retained to represent Shaw Group shareholders in connection with the acquisition of the company. The Shaw Group Inc. (SHAW) today announced it has signed a definitive merger agreement with CB&I (CBI) under which CB&I will acquire Shaw in a cash and stock transaction valued at approximately $3 billion.

Under the terms of the agreement, CB&I will acquire Shaw for $46.00 per share in cash and stock. Shaw’s shareholders will receive $41.00 in cash and $5.00 in CB&I equity (0.12883 shares based on an agreed upon recent average stock price of $38.81 per share) for each share of Shaw stock at closing.

There is an investigation concerning whether the board of Shaw obtained the highest price possible for shareholders while not extracting personal benefits for themselves.

Unless you feel the deal will not go through there is little advantage in holding the position and hoping that the deal does not go through.

In addition, you face a risk of some individuals calling their shares early and you don't need to deal with that possibility.

In addition, the SHAW put spread is still open and because of the buyout interest, the put spread will not be filled, so you can CANCEL the shaw put spead now.