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.
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.
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