Lincare (LNCR) is rallying on heavy volume of more than 11 million shares midday Wednesday. The stock was recently up $4.79 to $30.05 on a Financial Times story (LINK) suggesting that Germany’s Linde might make a $40 or greater per share bid for the company. The report has triggered a speculative frenzy in LNCR options. 17,000 calls and 2,350 puts so far. Ranked by volume, July 27, July 30, July 29, July 26, and July 28 calls are the most actives, followed by August 27 and 30 calls. Meanwhile, 30-day at-the-money implied volatility in the options on the Clearwater, FL home oxygen and respiratory products company surged 77 percent to 62 and to new 52-week highs.
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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.