Friday, June 1, 2007
Once again it's Friday and volume in a variety of options families is through the roof - Micron in particular - on pre weekend speculation. MU in recent weeks has been the subject of "chatter" that it will be taken out by the likes of Blackstone. Sandisk (SNDK) has even been mentioned (there has been heavy SNDK put buying today). In the June contracts alone, call volume totals over 66,000 contracts, or about 6-times the put volume. Do I know if a deal is going to happen? No idea but many folks are hoping for something. I am long MU. Not only has options volume been strong, but perhaps of greater significance is the stock volume which is approaching 60 mln shares today! It's one thing for folks to step up and buy lots of cheap out of the money calls, but a whole different situation when you see multi million dollar blocks of this stock continuously crossing the tape. The 10,000 share blocks have been the smaller blocks today indicating major institutional and fund accumulation today for whatever reason. Perhaps we'll soon find out.