Attention, those of you who own Civitas Resources, Inc. (CIVI): CIVI has been acquired SM Energy Company (SM). As a result of this acquisition, all owners of CIVI have received 1.45 shares of SM for every 1 share of CIVI that was previously owned.
Please note: Calls that were sold against CIVI last month have been exchanged for SM as part of the acquisition. These SM calls stand a chance of being exercised at present. If this does occur at options expiration on February 20th, the shares of SM that you presently own will be called away, and no further action will be needed on your part. If all of your SM shares are called away at expiration, we will adjust the activity to close your CIVI position profitably, allowing you to search for new positions like usual on Trade Day.
If you still own SM shares following expiration, you should sell them on Trade Day and transmogrify the position. Because of the unique share quantities that you will be left with following the merger, and the unique adjustments that will need to be performed as part of the transmogrification process, we would request that you please give us a call prior to transmogrifying your position. Please give us a call after you have completed all of your other regular Snider Method trading for the month and we will guide you through the process of transmogrifying CIVI.