Did AUZ buy a chunk of Husky?, page-11

I did not know, and so decided to go to Investopedia.

"Typically, the announcement of a buyout offer by another company is a good thing for shareholders in the company that is being purchased. This is because the offer is generally at a premium to the market value of the company prior to the announcement. However, for some call option holders, whether a buyout situation is favourable will depend on the strike price of the option they hold and the price being paid in the offer.A call option gives the holder the right to purchase the underlying security at a set price at anytime before the expiration date. Effectively, no one would exercise this option to purchase the shares at the set price if that price was higher than the current market price. In the case of a buyout offer, where a set amount is offered per share, this effectively limits how high the shares will go, assuming that no other offers come in and the offer is likely to be accepted. So, if the offer price is below the strike price of the call option, the option can easily lose most of its value. On the other hand, options with a strike price below this offer price will see a jump in value."

So the short answer is, depends. Sorry I have no personal experience in this. 

BTW I am in the same boat.