Optimistic Bets on CK Hutchison Jump 28,700% in Value After Stake Sale
- Calls traded two weeks ago surge after BlackRock deal
- Transaction occurred after report about Panama contract
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Call options on CK Hutchison Holdings Ltd. that traded on Feb. 18 are now worth 28,700% more after shares jumped following the sale of a subsidiary’s port stakes to a consortium led by BlackRock Inc.
More than 5,100 March calls with an exercise price of HK$46 changed hands for 3 Hong Kong cents each on Feb. 18, a couple of weeks after news broke that Panama was mulling canceling its contract with Hutchison Ports PPC. Their price soared on Wednesday as much as 35,800% — to HK$3.59 from 1 Hong Kong cent — as the stock rallied 22% after the stake sale was announced, giving the conglomerate founded by billionaire Li Ka-shing more than $19 billion in cash.