American Home Options Attract Interest
Yes, there actually is something going on today in the market besides the Fed announcement.
Drug maker American Home Products (AHP), often mentioned in takeover chatter, was seeing some interesting options activity.
In quiet trading ahead of the Fed announcement, some investors were chasing after the American Home out-of-the-money call options. (A call option is a right but not an obligation to buy a stock.) The May 60 calls traded about 5,400 contracts on an open interest of 3,956, with the premium most recently listed at 45 cents. According to one floor trader at the Chicago Board Options Exchange, the bulk of the volume on those calls was the result of two fairly large institutional trades coming from two separate houses.
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