Shares of Legg Mason (LM) are trading higher on the session after the company announced a succession plan for current Chairman and CEO, Mark Fetting, who will step down on October 1st.
The company?s lead Independent Director, Allen Reed, will become Non-Executive Chairman and Joe Sullivan, Head of Global Distribution, will become Interim Chief Executive Officer while LM?s Board conducts a search for a permanent CEO.?
LM is higher by 4.32%, trading at $26.57.
Traders are taking a positive long-term outlook on the name today by buying upside LEAP calls. A short while ago, the January 2013 $25.00 call was purchased 887 times, near the offer, for $2.60; second later 821 more contracts were purchased, on the offer, for $2.70.
Open interest on the strike is only 175 contracts, which indicates new positioning.
Implied and historical volatility is currently registering 24% and 18%, respectively. At $2.65, the Jan13 calls traded at roughly 34% vol.
Legg Mason, Inc. is a global asset management company. The company, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles.