Another big options play this afternoon, this time someone in the know (aka an insider or friends and family) about International Gaming Technology (NYSE:IGT). A “wiseguy” has bought 10,000 OCT $18 calls in IGT, for just 85 cents.
Of course on Friday, Italy based GTECH announced it had launched talks to buy IGT. This is in addition to other rumored suitors, such as the Carlysle Group, and Apollo Global Management.
IGT designs and manufactures gaming equipment for casinos, both physical and online casinos. Given the shadiness of the industry as a whole, it’s no surprise that someone is using insider info to make a crap load of money, buying 10,000 Oct $18 calls for 85 cents while the stock currently trades at $15.86 on Jun 18.
Currently over 12,000 Oct 18 IGT calls have traded, versus an open interest of only 7300.
As you can see on the chart, IGT gapped up almost $2.00 on Friday June 13 on huge volume. And now 10,000 Oct 18 calls were bought, so clearly something is up, and this latest big option buy of IGT just solidifies it further.