Over the weekend ODP and OMX announced they were in merger talks.? ODP was trading up about 17% up .85 to 5.45
On January 18, a customer bought a large block of the April 5 calls paying .20, buying about 10,000 of the calls.? The customer appears to have been speculating on the news from over this week that OMX and ODP are in merger talks.? Today, the customer is taking profits and rolling the whole trade higher.
So far the customer has sold 4,000 of the April 5/6 call spreads collecting between .45 and .48 cents.? At this point the customer is in his or her April 5 calls from the Jan 18 for essentially free.? That said, the customer probably wants to get more cash off the table.? Look for more of these spreads to trade, possibly the full 10,000.