Action In Coupa Software After Private Equity Firm Agrees To Buy Anaplan

Action In Coupa Software After Private Equity Firm Agrees To Buy Anaplan

Shares of Anaplan Inc PLAN Monday spiked close to 28% after private equity investment firm Thoma Bravo announced it had signed a deal to acquire the business planning software company. The announcement also triggered a big move in Coupa Software Inc COUP.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that traders would want to “buy near-dated calls and sell out-of-the-money long-dated calls” because the stock will cease to exist after the acquisition.

Related Link: All The Stocks That Moved From CNBC's 'Fast Money: Halftime Report' Monday

That’s exactly the move traders made for Coupa Software’s stock options on Monday, which were trading more than 2.5 times their average daily volumes, he added.

A buyer bought 1,000 of the April 115 calls for an average price of $2.30 per contract, and then sold 1,000 of the January 2023 calls at an average price of $4.40 Khouw mentioned. The trader “may be making a similar bet to what we saw on Anaplan,” he said.

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