Liz Claiborne (LIZ) sees a spike to $1.86 to $13.69 on two times normal share volume of 5 million on a WSJ story about that the company shopping itself to private equity for $20 per share. 2,700 options traded on the stock, which is not unusual, but the flow is lopsided — with 2,440 calls and 225 puts traded, a ratio of more than ten-to-one. Apr 13, 14, and 15 calls are the most actives and levels of implied volatility moved up 60 percent to 75!
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.