Merger Arb & Corp Actions
Trade announced deals and corporate events
What it is
Trade announced corporate actions — merger arbitrage (long target / short acquirer until the deal closes), spin-offs, tender offers, SPAC trust-value trades, dutch auctions and going-private transactions.
When it works
A deal is announced with a measurable spread to the offer price; a spin-off with a clean parent / child split; a SPAC trading below trust value; warrant structure creating asymmetric exposure to the close.
Why the setup pays
Price Action = Binary — the payoff is driven by a discrete corporate event (deal closes or breaks), not by trend or fundamentals. Direction follows the situation. Horizon brackets the expected close date.
The market it wants
Any regime. Works in any regime; deal risk rises in Contraction (financing falls through, regulator pushback), so spreads widen and arb pays more in tight markets.
What goes wrong
Deal breaks (regulatory, financing, shareholder vote); the offer gets cut; long-tail litigation; one-leg-only execution before the trade is set.
Where it sits in the book
Merger Arb & Corp Actions belongs to Event Catalysts & Asymmetric Convexity, the group whose edge comes from tails of the distribution (extreme variance expansion). That group looks for massive event-driven shocks or catastrophic tail events, and its risk profile is bi-directional breakout, or extreme tail protection.
Run this on the live market
This is the thesis the engine scans with. It reads the whole universe, scores what matches, and prices the structures against fair value.
announced merger deals with a stable spread to offer, plus recent spin-offs trading below sum-of-parts
No account needed to run it. The free trial runs on the same live data a paid account gets.
Educational material, not investment advice. Nothing on this page is a recommendation to trade any security or structure. Options trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future returns.