Somebody Knew About News Corps’ Bid For Dow Jones – And Made a Killing
An interesting little post (subscription required – ???) over at the WSJ’s Deal Journal blog:
Trading [in Dow Jones options] was particularly heavy April 17 – the day we’re told the approach from Murdoch was made – and last Wednesday, according to Track Data.
Monday [4/30, the day before the public announcement] more than 4,300 Dow Jones call options changed hands, bringing the total for the month to a little more than 10,000 contracts. That compares with about 7,000 over the first three months of the year.
The September $45 calls, in which trading was heaviest on Monday, surged 3100% yesterday. That’s $33,000 into $1 million – and then you head for the Bahamas!!!! Or bet it all on the Warriors Thursday night if you’re gonna need $2 mil.