Closed Out RDA Microelectronics
I closed out my position in RDA Microelectronics (Ticker: RDA) today by buying back the Puts I sold. I bought back the June 2014 $17.50 Puts and the September 2014 $17.50 Puts for $0.10. These Puts were sold with an average price of $0.3109 from 12/30/13 through 1/16/14. It’s highly likely that this merger will close, but there has been controversy with the parent: Tsinghua Unigroup not obtaining the proper pre-approval from the NDRC in its acquisition of RDA Microelectronics. This should no longer be an issue since the PRC has announced changes in its outbound investment rules, but you never know. As the options saying goes: “when in doubt, close it out”.