Another M&A deal, another sinister sequence of options activity leading up to the ‘surprise‘ announcement…
The number of bullish Mobileye NV options rose to an all-time high last week, ahead of this morning’s news that Intel would buy the Israeli maker of cameras and chips for driver-assistance features. As Bloomberg points out, call open interest surged 84% since the February expiration to almost 160,000 contracts, 33% more than outstanding puts.
This extremely unusual actvitiy did not go unnoticed as Joe Kunkle (@OptionsHawk) pointed out last week that there was a sudden burst of call options activity and a steeply inverted implied volatility skew…
Of course, The SEC seems to have failed to notice it.
Somebody is going to do very well…
Lucky guess we presume.
Notably Intel put volume also spiked on Friday (as the price of the stock rose).
via http://ift.tt/2mj4qBW Tyler Durden