Will the options probably expire worthless? Yes, you shouldn't buy put options in hopes of realizing a gain in this case. The reason they make sense for some investors is the same reason you buy homeowners insurance. You don't expect to use it, but on the off-chance you need it, you're happy to have it. At $3, it beats taking a sleeping pill.
If you're an outsider with your nose pressed against the glass, wishing you could join in on the party, it may not be too late.
If you think bidders for Onxy will catapult shares higher, you also can use the above-described method of limiting risk. Speculators can buy shares at the current price while limiting total downside exposure to $16 ($3 for the November option and $13).
If bidding heats up and shares increase to $140 or more, you participate the whole way (while simultaneously neutralizing "friendly neighbors"). In order to profit, the shares need to appreciate at least $3 more than your purchase price.
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.