The Options Trade That Gave Away A Takeover Weeks Early

CCC sells software that helps auto insurers, repair shops and carmakers run their business. It’s not the kind of stock that usually draws a crowd in the options market.

So think about this. Why do you think they were buying the December calls?

Because they knew this was coming.

Every day, I watch where the big money goes in the options market, and when somebody keeps buying calls with no news to explain it, I want to be on the same side.

When the GTCR and Elliott report hit, CCC jumped about 11% in after-hours trading.

This morning the room had a choice. Take the 75% win and go home, or stick around?

I took the win. Being more aggressive with these closes has played to our benefit, and I think we’d all agree on that.

Why I Think GFL Environmental Ends Up Above $50

Now look at GFL Environmental (GFL), the trash and recycling company.

Back in July, Bloomberg reported that GFL was weighing a deal to go private after buyout firms showed interest. Nothing has been announced since.

But the options market is acting weird. Today, traders sold about 42,000 of the October $45 calls and bought the November $45 and $50 calls. Instead of giving up on the bet, they pushed it out another month.

This one smells like a buyout. I think this is going to be somewhere above $50. There’s something screwy here.

Who would want them? I’d look at Waste Management or Republic Services, or maybe a utility like NextEra.

If you’re still sitting on the October $45s, fine. Go get the Novembers.

Know what you’re signing up for. Rumors aren’t deals, and if nothing gets announced before November expiration, those calls can go to zero. That’s why I keep these bets small.

As I told the room, GFL is otherwise known as Good Freaking Luck.

How To Follow The Money With Me

This is exactly what Delta Strike is built for.

I track the big institutional money in the options market and trade quick swings on cheap options, about $100 a trade on average and two or three positions a week.

Since early September, I’ve won 14 of my last 16 trades. Past results don’t promise future ones, but I like trading on the same side as the people who seem to know something.

The flash sale ends tonight at 11:59 p.m. ET.

Join Delta Strike Before The Sale Ends

Your only option,

Mark Sebastian

P.S. There’s a third stock I’m watching with the same kind of weird call buying. I told the room I have a weird feeling it’s going to make our year. Delta Strike members will hear about it first, and the sale ends at midnight.