The company averages 803 option contracts a day, but yesterday traded over 8,000 for a 1000% increase in volume relative to the average over the last sixty trading days. Even further, 8085 calls traded and only 6 puts. That's a 1348:1 ratio. Hello?!
What were the trades? Was it at least a call spread? You can see the options tab below which shows 7300 calls traded on the Nov 5 and Dec 5 lines combined.
So was it a calendar spread? On the Options tab, by clicking on the green volume numbers, you can pull up the actual trades. I have put the Nov 5 and Dec 5 trades together below for ease of analysis. We can clearly see that the biggest trades are colored green - which indicates a purchase by a customer on the offer. Time & Sales shows us that the Nov 5 calls traded 0.65 on a 0.50 x 0.65 market and the Dec 5 calls traded 0.80 on a 0.65 x 0.80 market. That's a purchase on the offer as far as I am concerned.
So what? Well, what a surprise, COMS announces they are being purchased by HPQ for $7.90 a share in cash. So what's the net? Nov 5 calls ---> 2.90 (profit of 2.25 x 3961 = $891,225) and Dec 5 calls ---> 2.90 (profit of 2.10 x 3269 = $686,490). Total = $1,577,715 profit in one day. Uh oh...
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