WDC Western Digital (WDC) 50 cents to $17.62 and volume rose to 5X the normal levels Wednesday. 21,000 calls traded, compared to 1,800 puts. 6,975 WDC April 20 calls traded and open interest increased by 4,626. The volume included a block of 3,900 at the offer for $1.5 per contract. 5,155 April 17.5 calls traded and open interest increased by 4,550. The top trade was 1,206 between the bid and offer for 55 cents. Most of the other trades were smaller size and hitting at the offer. Overall, it looks like call buyers were taking new positions, perhaps on the idea that IBM’s move for Sun (JAVA) opens the door for further consolidation. EMC and NTAP were mentioned as possible merger candidates following the merger news Wednesday.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.