Options Trading: A Banner Day for WOW
By Bryan Bottarelli
In this article
Weyerhaeuser receives $1.35 billion in cash from Domtar.
WaveStrength Options Weekly members are up 440%.
Dow Chemical could be a buyout target worth $54 billion.
It's fun to start off a trading week with explosive upside profits.
It's even more fun to write a column on a day when two of your trading positions are shooting aggressively higher -- and that's exactly the case today.
The day got started when Domtar (which is a Montreal-based paper maker) said that its shareholders approved a $3.3 billion combination with Weyerhaeuser. The deal calls for Weyerhaeuser to receive a $1.35 billion cash payment from Domtar, and Weyerhaeuser shareholders will also receive 55% of the new company's stock.
Options Trading: An Amazing 440%!
On the news, Weyerhaeuser gained $2.18 and hit a new 52-week high of $87.08. More importantly, the WY April 65 calls that we originally recommended in WOW for $3.70 hit a high of $20 today, good for an amazing 440% gainer.
Not to be outdone, we also witnessed an amazing upside move in Dow Chemical (DOW:NYSE). According to a report in London's Sunday Express newspaper, Dow Chemical could potentially be the target of a leveraged buyout worth more than $54 billion -- which would be the largest buyout ever.
On the news, shares of DOW jumped $2.38 and set a new 52-week high at $47.26. More importantly, the DOW June 40 calls that we originally entered for $2.95 traded as high as $7.90 today, good for another amazing 167% gainer.
So in just one trading day, two of our current WOW positions have registered explosive upside gains -- and I hope you're thoroughly enjoying your profits!
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Related Resources
Dow Chemical: Dow Chemical Co. management would try to fend off any buyout attempt. - MarketWatch.com
Weyerhaeuser Options Quote: Weyerhaeuser call options quote. - MarketWatch.com
Chicago Board of Exchange: The Definitive Source for Options Trading Information.