On May 24, someone snapped up 100,000 $8 calls expiring Oct. 20, an unusually large volume for the stock. It appears to have been hedged with the sale of more than 1.9 million shares, reducing the risk if shares fell.
After today’s rally, the options soared in value by $8.8 million, while the hedge lost $4.7 million, bringing the net gain to $4.1 million, according to calculations based on data compiled by Bloomberg.
Analysts currently value the stock at $13 if the pipeline is built, a value that implies $5 for the company and $8 for the pipeline, so “buying a call option makes sense,”
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