very high call volume on ABT,POT today

Discussion in 'Options' started by smile, Oct 10, 2012.

  1. smile

    smile

    Incredibly high call volume in the Jan. 2013 monthlies for ABT and POT today. The POT 25 call for Jan. 13 had over 1million contracts traded.

    Anyone have any idea why?

    Also very large volumes for the Nov 12 monthlies as well.

    Many thanks for any insights.
     
  2. smile

    smile

    here are the chains
     
  3. someone knows something you don't.. haha
     
  4. ABT is dividend related.

    so is POT.
     
  5. Curious. I know they both go ex-div tomorrow, so that explains some of it. Also, ABT is splitting into two companies near the end of the year. If someone knew something (like a takeover) I would think we'd see more OTM volume. But that sure is a lot of contracts relative to OI.
     
  6. blnbr

    blnbr

    Those ABT calls are deep 'in the money' calls. If someone knows the price will move up significantly in the near future, he would buy 'out of the money' call.
     
  7. Yeah it's dividend related. Similar volumes have taken place prior to previous ex-div dates. I wouldn't get too excited.
     
  8. dividend arb...