My super secret sources alerted me to heavy call buying in MEE on friday. MEE was trading around $56 on friday but somebody bought 10,000 Feb $65 call options. These calls are almost 15% out of the money, so the person was obviously banking on a buyout before the third friday of February.
Lo and behold, this comes out this morning. Alpha Natural Resources is in talks to buy-out MEE in a deal valued at $69-$70/share.
The 10,000 calls bought between $30-$60 a contract are now worth $400-$500 per contract. A gain over 1300%!!!
Was somebody privy to non-public information??
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