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Lubrizol Call Volume Surged Before Berkshire’s Buyout Bid

Trading of bullish Lubrizol Corp. options surged to the highest level in a year on March 9, before Berkshire Hathaway Inc.’s offer today to buy the world’s largest producer of lubricant additives lifted the shares 28 percent.

Call trading surged to 2,931 contracts on March 9, and open interest for the April $110 calls jumped to 2,654 from 41. A block of 2,168 April $110 calls traded for $2.35 each on March 9, data compiled by Bloomberg show. Lubrizol’s four-week average trading volume is 413. The April $110 calls advanced almost 11-fold to $24.70 today. The Wickliffe, Ohio-based company surged 28 percent to $134.68.