Buyout Chatter Spurs Nexen Options Volume
Nexen is seeing heavy options volume ahead of its earnings report Thursday as talk of a possible takeover circulates the trading floors.
The Canadian energy company has averaged 1,300 daily calls in the last 30 days. But 5,900 NXY contracts had traded by yesterday afternoon, 3,000 of them in just 10 minutes, according to OptionMonster's tracking systems, which identify unusual options trading in real time.
There is no confirmation whatsoever of the buyout rumors, which specifically mention Berkshire Hathaway's MidAmerican Energy as the purported suitor. But NXY nonetheless ended the day up 3.26 percent to close at $15.52 and rose another 1.5 percent in after-hours trading.
(Disclosures: I have positions in NXY.)
- More Options Tips from Jon Najarian
- Options Tips from Pete Najarian
- Read The CNBC Stock Blog
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.