Are Shares Of The Knicks (Parent Company) Going Nuts On LeBron Speculation?

As we noted last night, we really think LeBron is going to stay a Cav.

But that’s pure speculation based on nothing, except the fact that it’s hard to imagine him doing a one-hour special about how he’s a sellout.

But this is interesting.

Darren Rovell at CNBC:

As of 2:45 p.m., shares of Madison Square Garden Inc., which includes the Knicks and the MSG Network, were up 1.21 per cent to $20.51, but the bigger story was in the options pits.

There’s been twice as many contracts sold to people betting that MSG stock will rise to $22.50 by the end of the month as compared to people betting it will fall to $20 by July’s end.

“There’s absolutely no justification for this activity other than the LeBron James play,”  said Jon Najarian, co-founder of Trade Monster and a CNBC contributor. “People will most likely continue to speculate into tomorrow’s announcement.”

Meanwhile, at InTrade, the odds that LeBron stays a Cavalier has plummeted back to 50%. Is anyone trading shares of MSG and the Intrade contracts together as some kind of pair trade?


Photo: InTrade

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