Bulls join barbarians at CommonWealth's gate
CommonWealth REIT has barbarians at its gate, and the bulls love
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 2,000 November 25 calls for $0.60. There was no open interest at
the strike before the trade appeared, indicating that a new
position was initiated.
lock in the price where shares can be purchased in the owner of
offices and industrial spaces. The buyers will now be sure not to
miss a rally, while limiting their downside risk if it tanks. (See
section for more on how to manage trades more effectively with
CWH finished yesterday unchanged at $22.54. The stock exploded
higher in late February after activist investors Corvex and Related
said the company was badly run and offered to buy the real-estate
investment trust for $27. Other investors have piled in since.
The shares rose more than 4 percent early yesterday on an
announcement that the company's management agreement would be
altered, but they then surrendered those gains. Corvex and Related
called the move "hollow rhetoric" and "mere window dressing." The
dispute is currently in arbitration.
Volume also spiked in the October 22.50 calls and the January 22.50
calls later in the session, apparently the work of an investor
rolling a long position forward in time.
CWH is roughly at the same level where it consolidated in March and
April before bouncing in late July. That could also make some chart
watchers believe that shares will continue to advance.
More than 12,000 CWH contracts changed hands in the session,
dwarfing its daily average of 529. Calls outnumbered puts by almost
11 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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