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Mon, 20th February 2017

Anirudh Sethi Report

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Spot The Megamerger Leak, Kraft-Unilever Edition

while the story was first leaked by the FT Alphaville blog, there was immediate speculation how widely this morning’s megamerger was leaked first.

Sure enough, volume of bullish Unilever options rallied in the past two days.

As Bloomberg points out, on Unilever’s U.S. ticker, 10,909 calls traded on Feb. 15, the most since 2011 and compared with 232 puts; 5,186 bullish contracts changed hands on Feb. 16 versus 31 bearish bets. March $45 and $40 calls were the most active on Feb. 15; March and May $45 calls were the most traded on Feb. 16.  On the Dutch ticker, call volume jumped to 24,649 on Feb. 16, the most since September and more than double put trades. March EU40 calls were the most traded on Feb. 16.

Kraft also saw a surge in options activity…

Some ‘lucky’ trader just made a killing…

Uniliever has issued a statement on The FT ‘leak’…