Options Bet on a Mirant Pop by Friday
By: Mirant is seeing unusually active options trading ahead of the electricity company's annual shareholder meeting May 7.
The normal volume for MIR is 1,478 contracts a day, but more than 12,308 changed hands by yesterday afternoon. Trading was focused on the April 15 and May 15 options, where upside calls exceeded open interest at both strikes, according to OptionMonster's tracking systems.
Mirant stock finished the day up 1.6 percent to $13.36. The shares are above the 52-week low $9.11 reached just March 6 but are still some 68 percent below their high of $42.21. The April options activity suggests that traders are hoping for the stock to pop by Friday's contract expiration.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.
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