Zipcar Inc. (ZIP) is trading up 3.96 to $12.20.? ZIP is trading at a near term high on takeover talks.? Avis Budget Group Inc. announced that it has agreed to acquire Zipcar for $12.25 per share in cash, a 49% premium over the closing price on December 31, 2012, representing a total transaction value of approximately $500 million.
Today paper bought 3,000 ZIP Feb 12.5 calls for .10 with 5,331 contracts trading on the day. Average contract volume is 594 per day in the name, and open interest was 774 prior to this trade. The calls look to be a straight buy for speculation on a higher takeover bid.?
Implied volatility is down over 70% today in January. ?
30-day implied volatility is 15%.?? 10-day implied volatility is 32%.? 30-day implied volatility is trading below the 10 day historical volatility. ?
Zipcar, Inc. (Zipcar) operates a car sharing network. The Company provides over 700,000 members, also known as Zipsters, with self-service vehicles that are located in reserved parking spaces throughout the neighborhoods where they live and work.