Dell Looking to 'Shack' Up with Radioshack (RSH)?

by Houghton and Atkeson   11/07/08
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Takeover rumors on Radioshack (RSH) are swirling this morning. On top of the rumor list is that Dell (DELL) might be looking at Radioshack to expand its retail presence.

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Market participants playing the options market are signaling that there might be some validity to the story.

Option volume is three times usual. The RSH Nov 12.50 Calls (RSHKV) have traded 4,735 contracts, the RSH Dec 15 Calls (RSHLC) have traded 1,235 contracts and the RSH Jan 12.50 Calls (RSHAV) have traded 724 contracts.

Given the volume in the November and December lines are a fraction of the volume, it is safe to assume that these are not closers. Is DELL going shopping anytime soon?

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