One Options Trader Believes DYN Will Not See a Higher Bid (DYN, BX)

Dynegy Inc. DYN announced this morning that Blackstone Group BX as agreed to acquire the company in a deal valued at $4.7 billion, including the assumption of debt. Shares of DYN jumped higher on the news, rallying over 59% from yesterday’s closing price, currently trading at $4.43. Though the deal does included a 40 day period for DYN to find other bidders, one options traders believes the deal gets done below $5.00. A short while ago, the December $5.00 call was sold 4,700 times, on the bid, for $0.05; while this is (hopefully, for the trader’s sake) not a naked sale of options, representing a covered call position, this still enforces the idea that a bid higher than $5.00 is out of the question. Shares of Blackstone Group LP BX are lower by 3.45% on the session, currently trading at $10.63.