FCX and BHP

The BHP takeover chatter persists, pushing shares of Freeport (FCX) to a gain of more than $3 in the first hour of trading. Options prices are very expensive with the December 60's trading at $3.70 bid... the Dec65s at $1.60 bid. Anything can happen in the merger-hot mining industry, and for now the market is putting some credence into the takeover speculation. FCX would owe a hefty $375 mln breakup fee to PD if its buyout goes south. The most active of the December PD puts is the Dec110s; not heavy volume at 786 contracts, but an indication that some are hedging, or perhaps gambling that the PD deal won't make it.