Harrah's Options Trade Questioned

4 Oct 2006

CHICAGO, Illinois – As reported by Reuters: "Unusual options activity pegged to the shares of Harrah's Entertainment Inc. (NYSE:HET) ahead of the announcement of a buyout offer for the gambling operator is raising eyebrows among some market options players.

"Harrah's Entertainment, the world's biggest casino operator, on Monday said it had received a $15 billion buyout offer from private equity firms Apollo Management and Texas Pacific Group (TPG.UL), sending its shares higher.

"But last week, there was already 'unconfirmed chatter across options trading desks regarding a leverage buyout on Harrah's,' said Paul Foster, options strategist at financial-information Web site theflyonthewall.com in Chicago.

"Jon Najarian, co-founder of Web information site insideoptions.com in Chicago also saw unusual call activity in Harrah's in the days preceding news of a possible deal.

"…As early as September 20, Najarian noticed that some traders focused on Harrah's October 70 call options giving them the right to buy, what is now a $74.71 stock, for $70.

"…On September 26, 27 and 28, Najarian's computer model also showed a spike in call activity, suggesting the catalyst was a possible a takeover or a brokerage upgrade, Najarian said…"

Language: Any Language Location: Currency: > edit my preferences Home Online Slots Live Dealer Games Online Casinos Online Poker Online Bingo Games Lotteries Sports & Racebooks Fantasy Sports Forex Betting Exchanges Spread Betting Binary Options Exclusive Bonuses Weekly Newsletter Online Gaming News Payment Methods Gaming Software Gaming Site Owners Gaming Jurisdictions		Bonuses! New games! Gossip! And all the player news you can handle. Sign up NOW! View the current issue
	Harrah's Options Trade Questioned 4 Oct 2006 CHICAGO, Illinois – As reported by Reuters: "Unusual options activity pegged to the shares of Harrah's Entertainment Inc. (NYSE:HET) ahead of the announcement of a buyout offer for the gambling operator is raising eyebrows among some market options players. "Harrah's Entertainment, the world's biggest casino operator, on Monday said it had received a $15 billion buyout offer from private equity firms Apollo Management and Texas Pacific Group (TPG.UL), sending its shares higher. "But last week, there was already 'unconfirmed chatter across options trading desks regarding a leverage buyout on Harrah's,' said Paul Foster, options strategist at financial-information Web site theflyonthewall.com in Chicago. "Jon Najarian, co-founder of Web information site insideoptions.com in Chicago also saw unusual call activity in Harrah's in the days preceding news of a possible deal. "…As early as September 20, Najarian noticed that some traders focused on Harrah's October 70 call options giving them the right to buy, what is now a $74.71 stock, for $70. "…On September 26, 27 and 28, Najarian's computer model also showed a spike in call activity, suggesting the catalyst was a possible a takeover or a brokerage upgrade, Najarian said…"