Bristol-Myers Squibb Co.
(NYSE:BMY) shares continued their climb today amid speculation that the
company could be a takeover target for a larger un-named pharmaceutical
company. Implied volatility jumped over 5% during the past
week indicating an increased bet on bullish price action.
The
pharmaceutical company has been the target of takeover rumors for some
time now, specifically with France's Sanofi-Aventis who was previously
rumored to be interested in the company. Options activity looked
similar to yesterday's before it died down along with the rumors.
Bristol-Myers
does not comment on market speculation, but with 26,700 call options
trading hands yesterday compared to only 2,800 puts, this is definitely
a stock to
keep an eye on.
It seems that many traders are betting on the November $30 call
options, meaning they expect the price of the stock to exceed $30 in
about a month.
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