25,000 may call spread order executed at .38 cents
someone just bought these calls and paid $950,000. to potentially make $5,300,000 million net if the stock trades above 5.00 by the 3rd week of May, or sooner of course. This deal could happen anytime. By looking at the players , Genesco could easily buyout finl, or footlocker for that matter. They could pay 4 times todays price easily without hurting either co. I'm in, patience, the hardest thing in this market. Sure wish I could buy more! Good luck all
Every few posts someone comes up with the nutty idea of GCO buying out FINL. Wake up! That can NOT happen. The companies are engaged in legal action against each other, GCO management is desperately trying to dump their company, no one would finance the deal and GCO doesn't have the ability to make the buy in cash. Would you be happy to take GCO shares right now in a merger??? I didn't think so.
It's lovely that the stock is going up, of course, but nobody in their right minds would buy the whole company, devalued as it is, while this legal mess hangs over it. FINL just has to fight its own way up, and hope that it "loses" the court case in New York.
In light of recent May call volume here, could we be seeing the beginning of an exit from the spread? Also, it's intriguing to think about how this huge option play is affecting the underlying stock price in the trader's favor. Anyone smart on this? My admittedly uneducated hypothesis is that by establishing the spread in the first place, it could've pushed the price above the lower strike. Now exiting the spread, by closing the upper end position, the price is supported above the lower strike. Is this feasible?