tsla

Red Hat Options Trader Just Made Millions

The RHT trader bought out-of-the-money calls ahead of IBM's buyout deal

Oct 29, 2018 at 3:03 PM
facebook X logo linkedin


Red Hat Inc (NYSE:RHT) stock has skyrocketed today, after IBM Corp (IBM) announced plans to purchase the software concern for about $34 billion. At last check, RHT stock was up 44.9% to trade at $169.04 -- and one recent options trader made a killing with a well-timed call purchase last week.

In the last half-hour of Friday's session, a block of 359 weekly 11/2 125-strike calls were apparently bought to open for 45 cents apiece, or $16,155 total (premium paid x number of contracts x 100 shares per contract). At the time, RHT was trading around $116, meaning the weekly calls were roughly 9 points out of the money, with just a week of shelf-life left.

Today, that same weekly call option is now more than 40 points in the money. As such, the aforementioned buyer's weekly calls were closed for $48.63 today -- in just a few trading hours -- according to Trade-Alert. That's a massive profit of 10,700%, or about $1.73 million. For reference, the average daily volume at this strike on Thursday, Oct. 25, was just three contracts, and open interest was just 67 contracts.

RHT stock chart oct 29

 

 

 

 

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.