Options Brief: Arthur J. Gallagher (AJG)

AJG – Arthur J. Gallagher & Co. – The international insurance brokerage and risk management services firm appeared on our ‘hot by options volume’ market scanner after call options changed hands in the September contract. AJG’s shares are currently down 0.05% to stands at $25.79 as of 3:00 pm (ET). Investors purchased 1,800 in-the-money calls at the September $25 strike for an average premium of $1.30 apiece. Call buyers are perhaps selecting in-the-money calls because on Thursday the firm declared a regular quarterly cash dividend of $0.32 per share of common stock of the company payable on October 15, 2010, to shareholders of record as of September 30, 2010. Investors long the calls are entitled to that dividend if they exercise their contracts and take ownership of shares of the underlying stock by September 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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