Today’s tickers: TIE, LLY & FBC
TIE - Titanium Metals Corp. – Shares in the producer of titanium melted and mill products are up better than 40% on Monday after Precision Castparts Corp. announced late on Friday it will buy Titanium Metals Corp. for $16.50 a share. Options traders who purchased upside calls as recently as Friday afternoon are, in some cases, enjoying massive gains in the value of their options contracts today given the move in the stock. For example, open interest in the Nov. $12 strike call increased by around 200 contracts on Friday, with the bulk of that volume established by traders spending an average of $0.13 apiece to get long the options. The Nov. $12 strike calls this afternoon are changing hands at a last-traded price of $4.40 each, a more than thirty-fold increase since Friday. Four weeks ago, one or more bullish traders purchased 800 calls at the Nov. $13 strike at a premium of $0.15 per contract. The Nov. $13 strike call options currently tout a price tag of $3.60 apiece as of 1:10 p.m. ET, or twenty-four times what traders paid back on October 15th. As of the time of this writing, upwards of 11,300 options have changed hands on Titanium Metals Corp. The most active contracts at present are in-the-money call options in play at the Jan. 2013 $15 and $16 striking prices.
LLY - Eli Lilly and Co. – Bullish options are in play on drug maker, Eli Lilly and Co., today as shares in the name tack on 2.3% to $48.56 in early-afternoon trading. The company is scheduled to present Phase II data in rheumatoid arthritis for two investigational autoimmune drugs at the annual meeting of the American College of Rheumatology tomorrow, according to a press release issued by the company last week, and will present at the Credit Suisse 2012 Healthcare Conference on Thursday morning. Traders looking for shares in the name to extend gains this week…
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