Scott Nations Spotted Unusal Options Activity In Brocade Communications Systems, Inc. (BRCD)
CNBC Options Action's Scott Nations said on the show that he was watching the action in Brocade Communications Systems, Inc. (NASDAQ: BRCD) today. There are rumors that IBM (NYSE: IBM) or Oracle Corporation (NASDAQ: ORCL) could buy this company, and a high call options volume in this name suggests that the deal could be close. The call options volume was eight times higher than the usual volume.
Scott Nations explained that people are going crazy to buy call options in BRCD, because when big companies are involved in a purchase of a company that is worth less than $3 billion dollars, a bidding war might happen.
Brocade Communications Systems, Inc. (BRCD) spiked 6.46% on Monday, and it closed at $5.77.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.