HedgeFundLIVE — Early during Monday trading hours, it was announced that Warren Buffet’s Berkshire Hathaway Inc. will be acquiring Lubrizol Corp.
As always when Mr. Buffett gives his seal of approval to a company, the stock price surged, in this case 28% today. However, suspicious call volume was traded on March 9th. An excerpt from a Bloomberg article:
“Call trading surged to 2,931 contracts on March 9, and open interest for the April $110 calls jumped to 2,654 from 41. A block of 2,168 April $110 calls traded for $2.35 each on March 9, data compiled by Bloomberg show. Lubrizol’s four-week average trading volume is 413. The April $110 calls advanced almost 11- fold to $24.70 today…”
As the article goes on…
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