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Options Volume Suggest Dow Chemical Deal

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Options volume in Dow Chemical (DOW) and W.R. Grace(GRA) is getting the attention of traders on Friday afternoon. On CNBC’s “Closing Bell” Guy Adami and Jon Najarian reveal what the action signals.

Dow Chemical cancelled an investors conference leading to speculation that they might acquire W.R. Grace explains Najarian. DOW traded 20 times normal volume in options contracts Friday, he adds, and deals get announced over week-ends when boards can be sequestered.

Guy Adami adds he thinks GRA will likely spike into the close.

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Ahead of earnings Adami says Citi (C) is a buy. But don’t look for Chuck Prince to step down anytime soon, he warns. Also he likes U.S. Bancorp USB.

Symbol
Price
 
Change
%Change
SC0Y
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DOW
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GRA
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USB
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Trader disclosure: On Oct 11, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Macke Owns (EMC), (HAS), (INTC), (JWN), (ATVI): Najarian Owns (GOOG); Najarian Owns (EMC) Call Options: Finerman's Firm And Finerman Own (ASD): Finerman's Firm Owns (DAI), (LTD), (MSFT), (NYX), (NMX), (TGT). (WMT), (GS), (COP): Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts: GE Is The Parent Company Of CNBC