Titanium Metals (NYSE: TIE)is still holding it’s bid after early morning takeover rumors pushed it higher. (NYSE: TIE) is currently up 8.5%.
Titanium Metals has been subject to takeover chatter the past few months, though volumes have not confirmed the price action until today. Currently (NYSE: TIE) volume is 8.4 mil shares vs average of 3.6 mil.
Option traders are currently targeting the April 16 calls, as of 1:30 est 24,800 calls have traded vs an open interest of only 295 contracts. The contracts days range is .30c – .95c. The purchase has already returned a few hundred percent since the opening trade.
For the 16 calls to finish in the money (TIE) must close above 16$ after the close of trading on April 16th.
It does not appear the contracts were spread off to offset the price and risk of the purchase.
TIE 52wk Range: 5.14 – 16.24