Stocks quoted in this article:
Procter & Gamble (PG – 73-1/4) was listed in today's Wall Street Journal
as a suitor for Bristol-Myers Squibb's (BMY – 66-5/8) Clairol division. The hair-care line features such well-known brands as Nice and Easy, Herbal Essences, and Natural Instincts. PG is rumored to be just one of a handful of interested parties.
PG is trading modestly lower today while BMY is up over two percent. PG's pullback has brought it to support at its colliding 10-day and 20-day moving averages. Shares of the consumer name have not closed below both of these short-term trendlines since November 9. Option activity is relatively heavy on PG today, with over 4,000 contracts trading on the out-of-the-money December 80 call. Open interest currently stands at 5,100 contracts on the front-month position.
A pair of December calls are active on BMY today possibly in response to the news. The December 60 call has seen over 5,000 contracts cross the tape, while over 4,000 contracts have already changed hands on the December 65 call.