The Options Insider

Takeover Call Buying in ESRX

by | Mar 31, 2015 | Unusual Activity

2140 ESRX Apr 90 calls went up in one block.? ESRX is up on takeover rumors and call buyers are flocking into to buy OTM calls.?

Calls trade in ESRX ? takeover call buying

?ESRX

Shares Express Scripts Holding Co. (ESRX) are up 2.34 to 87.75 today. ESRX is near the top of the 52 week range.

  • Paper traded 2140 ESRX Apr 90s for .85.
  • The ADV is 6532 contracts.
  • The OI is 2763 contracts.

The volume went up in one block.? ESRX is ripping up on takeover rumors and call buyers are flocking into to buy OTM calls.? Total volume on the Apr 90s is 7700+ contracts with the IV up 6 points.

  • IV 30 is trading for 30%.
  • HV10 is trading for 23%.
  • IV 30 is trading above the HV 10.

Express Scripts Holding Company provides healthcare management and administration services on behalf of its clients, which include health maintenance organizations (HMOs), health insurers, third-party administrators, employers, union-sponsored benefit plans, workers compensation plans, and government health programs. ?

 

Calls trade OKE- curious diagonal put spread goes up

OKE?

Shares of ONEOK, Inc. (OKE) are up .29 to 48.33 today. ?ONE is near the middle of the 52 week range.

  • Paper traded 250 OKE Apr 50 calls for .90.
  • The ADV is 1825 contracts.
  • The OI is 17444 contracts.

The volume went up in one block.? OKE Apr 50 calls traded for .55 and .60 yesterday on two large blocks.? Paper today is still buying the Apr 50 calls pushing the IV up 5 points.? This looks like more speculative upside call buying.

  • IV 30 is trading for 41%.
  • HV10 is trading for 34%.
  • IV 30 is above the HV 10.

ONEOK, Inc. is a diversified energy company. It is a partner company of ONEOK Partners. The Company holds approximately 41.20 % interest in ONEOK Partners. The Company?s distribution markets include Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and Topeka, Kansas, and Austin and El Paso, Texas.

 

Calls and puts trading in MMP- tough to call straddle trading

?MMP

Shares of Magellan Midstream Partners, INC (MMP) are down 1.12 to 77.92. ?MMP is near the middle of 52 week range.

  • Paper traded 70 MMP May 75 put/May 82.5 calls for 2.52.
  • The ADV is 700 contracts. ?
  • The OI is 15 and 6 contracts.

The volume went up in 2 blocks marked straddle on the ISE.? This trade is showing just over the midpoint of the strikes to indicate buying by the trader.? The volume on the strikes is over 500 contracts so there has been some follow up buying.? This could be a play on the dividend in MMP which goes ex-d around May 5th.

  • IV 30 is trading for 25%.
  • HV10 is trading for 25%.
  • IV 30 is at the HV 10.

Magellan Midstream Partners, L.P. is engaged in the transportation, storage and distribution of refined petroleum products. The Company operates in three segments: refined products, crude oil and marine storage.