$BHI closed Friday at less than $60 a share after starting the week under $50. This morning the stock is set to open near $70 share as it has been acquired by Halliburton.
On Friday many option strikes saw unusual action namely the December strikes $60, $62.50 and $75 as Speculators piled into the calls betting that $HAL would bid up $BHI's share price. Those speculators stand to make a significant profit this morning when $BHI opens for trade as their options will have more than doubled in price.
Just an honest speculative bet on the $HAL buyout? Or did someone know something?
Heading into Friday those December strikes had no interest, but that interest absolutely exploded on Friday:
A 123 open interest to almost 24,000 for the $62.50 calls and from an open interest of 4 to almost 26,000 on the $65 calls.
