King Pharmaceuticals Inc. (NYSE: KG) intensity exploded on August $10 calls with nearly 4,000 trading before 10:30 AM as a rumor that Abbott Labs (NYSE: ABT) is looking at the Company for a $16.00 offer. Implied irresolution initially overturned higher from 91% to 98%. King shares are cheap on most metrics and it trades just 5X change value with solid drug prospects, despite some past FDA rejections. King will inform earnings before the open on August 6th and with a 2.28B market cap, this name could definitely be in play. Large lots are being bought offer side, showing institutional interest.
-JOE KUNKLE, OPTIONSHAWK.COM
Update: as of 10:48 AM EST we have seen over 5,900 contracts change safekeeping in the AUG-$10 CALLS versus a preceding open interest of 2,789 contracts.
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