It's Good To Be King (KG)
by Houghton and Atkeson 08/05/08
King Pharmaceuticals (KG) is scheduled to report earnings on Aug. 7 before the market opens. Additionally, there is some speculation that King could be acquired near term.
With these thoughts in mind, option investors are getting long the KG Aug 12.50 Calls (KGHV), the KG Aug 15 Calls (KGHC), the KG Sept 12.50 Calls (KGIV) and the KG Sept 15 Calls (KGIC).
More than 20,000 call contracts have traded today, mostly in the KG Aug 12.50 Calls (KGHV). This volume represents 42 times the usual volume.
In the middle of 2007, King was "king" with a stock price north of $20 per share. Having been cut in half, it appears to be moving off of the lows from earlier this year and heading back to its former glory.
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