reality...most buyouts are a surprise...and the options were no indication of anything...6000 call amounts to 600k shares...there are 12M shares outstanding...and 12M shares have traded the past couple days...the calls mean nothing
Radware (RDWR) is running higher after an Israeli newspaper, Calcalist, suggested Riverbed (RVBD) has made a $47 per share offer for RDWR, which is $2 better than H-Ps recent bid (unconfirmed). Oppenheimer analysts said today that Radware’s cloud and virtualization technology might make it an interesting acquisition target for other large networking names like Juniper (JNPR) and Cisco (CSCO). RDWR is up $6.27 to $39.03 on the takeover hopes and early options action includes 7,790 calls and 1,235 puts. Dec 40 calls are the most actives. 3700 traded and, with 51 percent trading on the bid, some players might be closing out positions on today’s news. Open interest is 9,096 and currently the second largest position in RDWR.
I have calls and puts...no deal tomorrow or Monday...stock tanks to $33...deal stock goes to $47 or higher...past history says...it will not stay at $40 on no deal...new news is the only way it gets past these levels..or an analyst raising the target price to $60