Trading volume in Leap Wireless (LEAP) options leapt to 7,139 contracts vs an average of 1,320...

|By:, SA News Editor
Trading volume in Leap Wireless (LEAP) options leapt to 7,139 contracts vs an average of 1,320 contracts on Friday prior to the announcement that AT&T (T) has agreed to acquire the smaller carrier for $1.18B. The call-to-put ratio  was 20-1. "It appears that prior knowledge of this takeover may have been leaked and traded on," says options analyst Ophir Gottlieb. The authorities are pretty good at identifying the people who carry out these trades, including with deals involving Onyx Pharmaceuticals and Heinz.