Some savvy traders stand to make millions off Friday's General Electric deal as a result of some very well-timed options trades.
On Thursday, when GE stock was trading around $25, traders starting aggressively buying the April 26-strike calls for around 33 cents each. A call purchase is a bullish bet that a stock will rise a certain amount within a set time. All told, nearly 18,000 of those calls traded.
GE shares rallied 8 percent Friday after the company announced it will sell its finance arm and buy back stock. With the advance, those call options are now worth $2 each, a sixfold increase that created an instant windfall for the buyers.