Akorn, Inc. AKRX 18.04% shares are up 18.2 percent on Friday after Bloomberg reported Frensius is considering a buyout bid for Akorn.
The news came just hours after Benzinga alerted its pro subscribers to an unusually large Akorn call purchase on the options market.
At 9:29 a.m. ET on Friday, Benzinga Pro sent out the following options alert:
- AKRX Option Alert: Apr 21 $27.5 Calls at the bid: 1350 @ 0.85 vs 253 OI; Ref=$26.645
Akorn shares spiked from around $27 to $30 roughly 3.5 hours later when the Frensius story broke.
What’s Up With Options?
Stock traders often watch the options market for any unusual activity, such as the big trade in Akorn ahead of the buyout news.
Options traders are typically seen as more sophisticated and advanced than the average stock trader. That generalization is particularly considered to be true when it comes to options traders who place extremely large orders. In other words, when somebody makes a huge bet in the options market that a stock is going to go up or down, stock traders take it seriously.
The Benzinga team is…
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