Visteon (VC) surged $5.88 to $35.88 on relatively heavy turnover of 1.8 million shares and options volume on the Van Buren, MI auto parts-maker are seeing some interest as well. 2,085 calls and 325 puts so far. Aug, Sep and Dec 35 calls are seeing the most volume and 30-day ATM vols are up 12 percent to 57. The largest open position in VC is in the Sep 35 calls after an investor bought to open a block of 5,000 contracts for $1.65 Wednesday (see 8/1 color). The volatility in the stock today is possibly related to a report that South Korea’s Mando wants to make a bid for Halla Climate Control — LINK. On July 5, VC made a bid to buy the 30 percent of Halla it doesn’t already own. It could now potentially sell its entire stake in Halla (or possibly try again to take full control). Shares, which had plummeted 43.1 percent year-to-date and to new 52-week lows prior to this week, are rallying back towards 50-day moving average on the speculation.
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.