Legg Mason (LM) shares gained $2.42 to $24.46 and 19,000 calls traded on the investment firm Wednesday, compared to 3000 puts. Bullish trading surfaced early in the day when shares were around $23 (see 10:15 comment–Premium)



The increased activity is probably related to a report in The Telegraph that said activist investor Nelson Peltz is planning a campaign to oust some of Legg Mason’s management.Citing unnamed sources, the British newspaper says Peltz has secretly purchased 9 pecent of LM (link to story). Players in the options market seemed to like the news, as July calls with strike prices ranging from 23 to 26 saw heavy buying Wednesday.