Allergan (AGN) in the Crosshairs
by Houghton and Atkeson 03/24/09
Allergan Inc. (AGN) is on fire. The options are even hotter. Yesterday, option investors purchased about 27,000 AGN April 45 Calls (AGNDI) and AGN April 50 Calls (AGNDJ) along with a few thousand more May and July expiration calls. Today, the option activity has already reached roughly 20,000 calls. The stock has jumped from $40 to $47.
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The belief is GlaxoSmithKline Plc (GSK) may have an interest in acquiring AGN with a starting bid of $72. With almost 50,000 calls purchased in the past two days, it appears investors have a high level of conviction in their GSK for AGN belief.
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