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Options Action: Tyco

Wednesday, 13 Apr 2011 | 5:50 PM ET

Speculation is swirling on the Street that Schneider Electric is considering a generous bid to acquire Tyco.

According to published reports, the offer could be as high as $63/ share.

Options Action
Strategies for playing a possible Tyco takeover, with Mike Khouw, Cantor Fitzgerald.

However talk is cheap and Tyco stock is not. How should you position?

Rather than place your bets outright, Mike Khouw of Cantor Fitzgerald suggests the following options trade.





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Trader disclosure: On April 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (COP); Weiss owns (DVN); Weiss owns (HK); Weiss owns (HPQ); Weiss owns (MSFT); Weiss owns (AKAM); Weiss owns (TBT); Weiss owns (GDX); Weiss owns (UUP); Weiss owns (DRR); Weiss owns (HBAN); Weiss owns (KEY); Weiss owns (QCOM); Weiss owns (BTU); Weiss is short (IWM); Weiss is short (X); Weiss is short (AKS); Weiss owns (AAPL) calls; Seymour owns (AAPL); Seymour owns (BHP); Seymour owns (F); Seymour owns (INTC); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm And Finerman Own (BP); Finerman Owns (C); Finerman's Firm And Finerman Own (CVS); Finerman's Firm Owns (HPQ); Finerman's Firm Owns (JPM) Leap, (JPM); Finerman Owns (JPM); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Owns (TGT); Finerman Owns (USO); Finerman's Firm Owns (WMT); Terranova Owns (JPM); Terranova Owns (V); Terranova Owns (BX); Terranova Owns (GS); Terranova Owns (UPL); Terranova Owns (AKAM); Terranova Owns (XOM); Terranova Owns (BAX); Terranova Owns (TCK); Terranova Owns (HOC); Terranova Owns (VRTS)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & IRL PLC

For Whitney Tilson
Funds Managed By Whitney Tilson Own (BRK.A)
Funds Managed By Whitney Tilson Own (BRK.B)
Funds Managed By Whitney Tilson Own (JCP)
Funds Managed By Whitney Tilson Own (STX)

For Mike Khouw
Cantor Fitzgerald is a market maker in (TYC)

For Colin Gillis
**No Disclosures

For Joe LaVorgna
**No Disclosures

SOT 3/28/11 Tim Seymour Halliburton
**No Disclosures

CNBC.com with wires.

  Price   Change %Change
TYC
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