5MRD

Polestar Merger Sends Gores Guggenheim Stock Higher

The options pits are bursting with activity in response

Deputy Editor
Sep 27, 2021 at 10:56 AM
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Blank-check firm Gores Guggenheim Inc (NASDAQ:GGPI) is up 3.2% at $10.29 at last check, after news that Swedish electric car maker Polestar will go public by merging with the special purpose acquisition company (SPAC). Large SPAC mergers have recently lost their luster, as many have performed poorly amid the latest U.S. Securities and Exchange Commission (SEC) regulatory crackdowns. The deal is valued at around $20 billion, and includes a private investment in public equity (PIPE). 

Today's pop has GGPI nearing its July 9 record high of $10.69. The security has been chopping higher on the charts since bouncing off the $9.70 level in late August, and has recently conquered the support of several moving averages, including the 20-day trendline. 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 53.11 calls have been bought for every put in the last 10 days. So far in today's busy options pits, 51,000 calls and 13,000 puts have crossed the tape, which is 54 times what is typically seen at this point. Most popular is the October 10 call, followed by the November 10 put, with new position being opened at both. 

 

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