CenturyTel (CTL) is down 93 cents to $35.27 and options volume is running 12X the recent average daily after the company announced plans to buy Denver’s Qwest Communications (Q), to create the nation’s third biggest local phone service and Internet company. CTL shares are down on the news and the top trade of the day is the sale of 4800 June 35 calls at 85 cents, which was part of a buy-write (72.5 cents over). May 35 calls are the most actives and the action also seems dominated by premium sellers. 8655 traded (54% Bid/45% Mid) vs. 1933 in open interest. Implied volatility is down about 5 percent to 15. The overall tone of trading in the options market seems to reflect lukewarm enthusiasm for the deal.
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.