Quick-handed traders made some pretty profits in Avon this week.
Trading for the cosmetic company were halted Thursday afternoon on Wall Street Journal reports that the company was in talks with private-equity firms to sell itself. The stock was halted at 1:46 p.m. Eastern, and when it reopened minutes later, shares soared more than 11 percent before fading to a 52-week low into the close. But some smart options traders were able to cash in on the news.
"Options volume ran four times its daily average on Thursday," Dan Nathan told CNBC's "Fast Money" on Thursday. "And the stock saw a flurry of call buying today at 1:45 p.m., moments before the stock was halted."
More than 2,000 of the September 4.50-strike calls were bought for an average of 20 cents each just prior to the halt. Since buying a call option allows one the right to purchase a stock at a set price for a given time, this is a bullish bet that the stock would be above $4.70 by Friday.