Heavy trading in Pandora Monday
Heavy trading in Pandora Monday. The stock up 1c to $9.10 on surging volume of 59M shares on reports Sirius XM (SIRI) is making a bid for the company in an all stock transaction, with Pandora shareholders receiving 1.44 of a newly issued SIRI stock. Sirius shares down 60c to $6.38 and Pandora is flat. In option action, the top trade in Pandora is an 11K lot of Sep 28th 10.5 calls at a nickel and likely a closing seller, as open interest is enough to cover and the contract is still well out-of-the-money with just four days until expiration. Meanwhile, Oct 9 puts have been trading against Oct 9.5 - 10 call spreads. More than 16K traded in all three strikes and appears to be a bullish play (selling puts to buy the call spread), which would reap a max payout if shares are north of $10 in 25 days. Total volume is 5X daily average and lopsided 3:1 at 79K calls and 24K puts.