Expedia (EXPE) Ready to Take Flight?
by Houghton and Atkeson 03/17/09
Expedia Inc. (EXPE) March and April call options are being purchased aggressively today.
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So far more than 9,000 call contracts have been traded with the majority being EXPE March 7.50 and April 10 strikes. The number of calls traded today almost equals the entire number of outstanding EXPE calls in all strikes and expirations shown in open interest at the start of the day.
Traders have indicated some of the option buying may be in response to a rumor that Google (GOOG) may have an interest in acquiring the company. With the stock trading at about $7.80, the EXPE March 7.50 Call (UEDCU) and EXPE April 10 Call (UEDDB) buyers are making a bet that the rumor is proven true in the next three days.
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