Activision (ATVI) Options Bet Pays 246% in an Hour After Merger Cleared

Discussion in 'Options' started by ETJ, Jul 11, 2023.

  1. ETJ

    ETJ

    Activision (ATVI) Options Bet Pays 246% in an Hour After Merger Cleared
    David Marino - Bloomberg
    One trader made a well-timed bet that Microsoft Corp.'s $69 billion bid to acquire Activision Blizzard Inc. would get the okay to move forward from a US court Tuesday.
    A block trade of 2,000 Activision call spreads — which would gain in value as the shares rise — was reported about 10 minutes before the company's shares spiked when a US judge denied the Federal Trade Commission's request to halt the deal.
    The spreads, which are equivalent to 200,000 shares, traded for $1.20 each at 10:44 am New York time. They were worth about $4.15 an hour later after shares rallied as much as 12%, potentially netting the buyer about $600,000 in profits.
    /jlne.ws/44G8cdG
     
    Sekiyo likes this.
  2. Sekiyo

    Sekiyo

    Calls went up 246% on a 12% move ?!
    Shame the underlying didn’t pump more xD
     
  3. d08

    d08

    Totally did not have a friend in the courthouse working. Not at all. Just completely random ;)
     
  4. mervyn

    mervyn

    Old Warren doesn’t like to lose.