One large wiseguy options trader is feeling giddy this morning, buying 1000 Oct 80 calls in Molson Coors (NYSE: TAP). This is a rather large unusual trade for TAP. The buyer paid $2.20 for the Oct 80 Calls, meaning they expect the price to exceed 82.20 before October expiration.
Molson Coors (TAP) has surged $1.29 or 1.75% so far this morning, trading at $74.47 currently. The stock surged around the the time of the options purchase.
So why the big buy in the Molson Coors (TAP) Oct 80 calls today? Well, you could argue that it was the Morgan Stanley upgrade this morning, from underweight to equal weight. But of course everyone knows that already, so that isn’t likely it.
Molson Coors reports earnings August 6, but that likely isn’t the driving factor in this call buying.
Our money is on a new, more impressive upgrade coming out soon, by another high profile investment bank, and this trader just happens to know someone who knows someone.