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AT&T Canada (ATTC - 33-13/16) is benefiting from this morning's report that AT&T (T - 32-1/8) has held conversations with British Telecommunications (BTY - 127-1/2) to explore a possible union between the two companies. ATTC has pushed ahead by just more than four percent this afternoon, reaching its top intraday mark since July 10. Since tallying a near-term intraday bottom on July 28, the equity has advanced by over 16 percent, obtaining vigorous support from its upsloping five-day moving average. The security is also perched just below its 10-week moving average, which it hasn't finished a week higher than in about two months.
In ATTC's options pit today, a spread transaction apparently has occurred between the August 35 and October 30 puts. The in-the-money August 35 put has seen volume of 2,225 contracts on open interest of 4,700 contracts. As for the October 30 put, 8,000 contracts have transpired at this out-of-the-money strike. Open interest on this option, which is now the most-active put on the CBOE, is just 45 contracts. This suggests that today's volume will become new open interest.