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Currently, the negotiations between Qualcomm and NXPI are signaling an all-cash acquisition price of $110/share. Assuming the price of NXPI begins to converge on $110 (currently $101 as I type this), and you wrote a $100 covered call, your shares will (likely) be called away prior to expiration. The owner of the call will then tender the shares for $110 and pocket the $1,000 difference, assuming they paid you less than $10/contract in premium (which I imagine they did, you probably sold this call when it was well out of the money). Hope that helps.


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