Last week, for a brief period, there was some extreme options action in CBOE Global Markets (CBOE), says Jay Soloff of Investors Alley.
The options traded 12x the normal volume, with 91% of the volume in calls. That many calls trading tends to be a bullish signal. In this case, the action was due to a rumor that CME had made a bid to purchase CBOE for $16 billion. CBOE shares spiked on the news, and many traders rushed to buy calls. However, CME soon denied the acquisition rumors and CBOE’s stock price plunged back to previous levels.
Learn more about Jay Soloff at Investors Alley.
