Today’s unusual options trading was out in the January-2014 $2.50 Calls. We have seen some 25,000 options contracts trade, which is 2.5 million shares worth of exposure on a fully leveraged basis. This appears to be a new position as well because the open interest was 15,093 contracts before today.
The 25,000 options contracts were on the bid rather than the ask, meaning it was a sale of some sort rather than someone buying speculative calls. Whether or not this was a hedge or just a high premium capture is hard to know, but most likely it is at least one big bet that a high-premium buyout is not coming here. This may just mute some of the old and recent buyout rumors which we generally considered more as “hope” than reality.
JON C. OGG
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