Financial
EMC option trading frenzy
posted on 31 July 2008 14:22
Gambling on acquisition or VMware sell-off
A frenzied pattern of option trading on EMC shares is being driven by speculative investors seeing an acquisition of the company or a VMware sell-off.
Since early afternoon on Tuesday 29th July the EMC share price has risen from $13.86 to the current £15.36 as investors buy options that get them a parcel of EMC shares they must sell or buy at a later date. The betting seems to be that the shares will rise and the options can be redeemed for a big profit in early August.
In excess of 280,800 options were traded on Wednesday which commentors called 'unbelievable.'
[Chris Mellor.]
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EMC option trading frenzy
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