NYT - a corollary trade on Dow Jones t/o bid

[JGalt]

After hearing news of Rupert's hostile takeover bid for DJ yesterday, I was amused to find that the rest of the print media gang had used the occasion for a party of their own. 

Granted, I think a little pop is understandable for all of these names, especially those with better valuations (and businesses for that matter) such as: Gannett (GCI), Tribune (TRB), and even Scripps (EWS). 

While the initial 11.5% run in the New York Times (NYT) was most likely fueled by some short-covering (around 10% of the float as of last month), the stock hasn't settled back down - still up over 7% from the May 1st low.

Yesterday, about two hours after the price spike, I picked up some May 25 puts.  Given the volatility spike, I'm considering a swap out of these and into a bear call spread.

Thoughts? Suggestions?

[optionpundit]

Just looking at the chart for the past few trading session, it seems there were 3 such spikes and most of the times it drifted to below $25 levels. While straight put is a good idea I think bear call is a better one as theta will on your side. But then it depends upon what is the profit objective you have in mind, straight puts sure bring more rewards as 23.5 to 24 (say 24) is a solid support area that means you may earn roughly $1 on expiration, while 25/30 BCS may bring about 0.85 for 4.15 investment. How about playing a iron fly at 25/30 and 25/22.5, credit earned 1.45 for $3.55 investment (I wish though, there was a 27.5 call) with BEs at 23.5, 26.4.

Net it will depend upon what is your outlook on the stock.

Profitable trading,