Deals
Heinz Options Bet Before Deal Gives $1.9 Million Profit
This article is for subscribers only.
Options traders who piled into bullish H.J. Heinz Co. bets before Berkshire Hathaway Inc. and 3G Capital agreed to buy the ketchup maker made almost $1.9 million on the wagers.
Nearly 2,600 June $65 calls, which give the right to buy the underlying shares, changed hands yesterday for about $91,900, data compiled by Bloomberg show. The contracts, with an exercise price 6.8 percent above the Feb. 12 close, were worth $1.99 million at 12:28 p.m. in New York today, creating a profit of $1.89 million. Overall call volume rose to 3,460 contracts yesterday, the most since Jan. 31 and almost 14 times more than trading in puts.