Options Update: Hewlett-Packard (HPQ) & Electronic Data Systems (EDS)
Hewlett-Packard (HPQ)
HPQ Calls Active; Shares Sell Off In Report Of EDS Talks
HPQ is recently down $2.10 to $47.10.
The WSJ reported HPQ is in advanced talks to acquire EDS for between $12 billion and $13 billion according to sources.
HPQ call option volume of 59,863 contracts compares to put volume of 21,209 contracts.
HPQ June option implied volatility of 35 is near its 26-week average of 33, suggesting slightly larger price risk.
Electronic Data Systems (EDS)
EDS Calls Active On Report Of HPQ Talks
EDS is recently up $5.24 to $24.10.
The WSJ reported HPW is in advanced talks to acquire EDS according to sources.
EDS call option volume of 11,366 contracts compares to put volume of 3,597 contracts.
EDS June 25 straddle is priced at $4.50.
EDS options are in a fast market. This suggests large intra-day price movement.
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About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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