Options Brief: Somanetics Corp. (SMTS)

SMTS – Somanetics Corporation – News that medical equipment manufacturer, Covidien PLC, agreed to purchase Somanetics Corp. for $25.00 a share in cash sent Somanetics’ shares flying 31.5% higher this morning to an intraday and new 52-week high of $24.86. One bullish options trader opted to sell short 1,450 puts at the November $22.5 strike to pocket premium of $0.05 per contract. The investor keeps the full $0.05 premium received on the sale as long as Somanetics’ shares trade above $22.50 through November expiration.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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