One investor wants to have their cake and eat it too in Nasdaq
The financial exchange has been quietly rallying all year and
surged sharply in the late morning after a report that it may be
acquired in a leveraged buyout at the hands of Carlyle Group.
optionMONSTER's Heat Seeker trade scanner showed a flurry of call
volume in the name as an investor adjusted a winning trade, letting
him or her lock in gains while
to further upside.
Some 4,025 March 28 calls were sold for $3 in volume below open
interest of 4,770 contracts, suggesting that an existing position
was closed. The investor then bought matching number of March 31
calls for $1. He or she received a credit of $2 and now stands to
keep making money with the 31s if the stock continues to climb.
NDAQ is up 4.28 percent to $30.73 in afternoon trading and has
gained 30 percent in the last three months. It's been climbing
along with other financial stocks as sentiment brightens toward the
economy and markets. The company has also been shifting its
business toward activities with steadier revenues than equity
Total option volume is 42 times greater than average so far today,
according to the Heat Seeker. Calls outnumber puts by almost 9 to
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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