After being rumored as a potential takeover target as a whole or in parts yesterday, a large trade has just gone off in the Safeway Inc. (SWY) January36C buying 14,175 contracts at a price of $2.5 against an Open Interest of 391. Since the trade has gone off against a lower Open Interest, we assume that this person is putting on a position in this strike. Check the OI tomorrow to make sure it has gone up in this strike by the traded volume. By doing this, the trader is betting that the stock will move up by 7.57% to the $36.00 level. If this trader is wrong and the stock does not reach the $36.00 mark by January expiration, they will lose $3,543,750 (the premium paid for the position). Always keep in mind that this position could be a hedge against a short stock position. Check back for more unusual option trades and analysis in Safeway Inc. (SWY).
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