MetroPCS (PCS) is off 61 cents to $12.96 and giving back some of the gains recorded Tuesday, which were inspired by reports the company is in talks with T-Mobile. The top options trade on the stock today is a 1000-lot of Nov 12 puts for 40 cents on ISE when the market was 30 to 40 cents. Looks like a new position. Nov 13 calls are now 4 cents out-of-the-money and are the most actives in PCS. 4,100 traded and, with 73 percent hitting on the bid and OI of 1,587 in open interest, looks like opening call writing. Oct 13 calls are seeing similar actoin with 2,050 contracts traded. The company confirmed today that it has inked out a definitive agreement to merge with T-Mobile. The deal will involve a reverse stock split (1 for 2) and make a $4.09 per share cash payment to shareholders, prior to the split.
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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.