tsla

MakeMyTrip Limited (MMYT) Options Volume Explodes On Buyout Buzz

MakeMyTrip Limited (MMYT) option traders are making a rare appearance, after the company said it will purchase rival ibibo Group

Oct 18, 2016 at 3:11 PM
facebook X logo linkedin


Indian travel website MakeMyTrip Limited (NASDAQ:MMYT) announced that it will purchase sector peer ibibo Group in an all-stock deal that reportedly values the combined company at roughly $1.5 billion. After being halted earlier, MMYT has skyrocketed -- up 53% at $31.20, and fresh off a two-year high of $31.90 -- with both stock and options volume soaring.

With roughly 6 million MMYT shares traded at last check, stock volume has nearly tripled its previous annual high of 2 million shares, set on Jan. 8. Meanwhile, in the option pits, volume is running at 58 times its usual intraday pace. Although with just 1,857 contracts on the tape -- also a 52-week peak -- volume is still light on an absolute basis.

Drilling down even more, puts are trading at 241 times what's typically seen at this point in the day, and the 724 contracts that have changed hands easily surpass the previous annual high of 405 puts, notched on Nov. 17. Calls still outnumber puts, however, with 1,133 contracts traded at last check -- and call volume on track to notch a 12-month high of its own.

Even before today's surge, MMYT's near-term option traders were already call-biased. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.27 sits lower than 93% of all other readings from the past 12 months, indicating calls almost quadruple puts among options set to expire in three months or less. Nevertheless, even the most populated strike on MakeMyTrip Limited's (NASDAQ:MMYT) -- the November 22.50 call -- is home to fewer than 750 contracts outstanding.

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.