(Bloomberg) – Timely trades at PG & E Corp. Gavin Newsom
PG & E shares jumped as Governor Gavin Newsom said the state found that this was not a fault the second-most destructive wildfire in the state's history, which broke out in wine country in 2017.
At 2:39 pm New York time – About half an hour before that announcement – 10,000 call options on the stock traded for $ 200,000 in a $ 10, or more than 50 percent from Wednesday's close, by Feb. 8. The trade was soon worth as much as $ 5.8 million. Reuters reported on the options activity earlier.
PG & E, which has set to become a bankruptcy to deal with crippling liabilities, has not indicated it's changing course. The stock, which has been trading at a loss earlier in the session, then surged a record 75 percent to $ 13.95, above the strike of the call.
The Feb. 8, $ 12 as much as $ 5.80 before ending the day at $ 3.68. This means the investor could have made $ 5.6 million from the trade, a 2,800 percent gain. Before Thursday, only 109 of those options existed, data compiled by Bloomberg show.
Another contract grabbed investors' interest on Thursday broke news clearance: a call expiring next January with a $ 20 strike. 65 cents apiece at 2:55 p.m., surging to as high as $ 3.57.
Cecile Vannucci in Hong Kong at the time of writing [email protected]
Divya Balji at [email protected], Joanna Ossinger, Teo Chian Wei
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