As corporate deal-making in Europe hits a 6-year high, a number of investors are turning to the derivatives market for signals to spot the next big takeover targets.Call options, or bets that a price will rise, offer a cheaper way to take a punt on a possible takeover target than buying the underlying stock, making them a favoured instruments for investors looking to place a speculative M&A bet.With deal activity involving a European target at its busiest since 2008 according to Thomson Reuters data, derivative desks are screening for stocks where demand for calls is strong to find out where the market expects the next big deal to happen."When you have (options) showing that something is happening and the stock is at a very low level, it makes a lot of sense to purchase an 'M&A call'," said Delphine Leblond-Limpalaer, equity derivatives specialist at Societe Generale. "We're currently in an M&A wave, so you just want to play it."
Thomson Reuters Corporation (Thomson Reuters), is a provider of information for the world?s businesses and professionals. Shares of TRI traded higher by 0.25% or $0.09/share to $35.60. In the past year, the shares have traded as low as $31.38 and as high as $38.73. On average, 870890 shares of TRI exchange hands on a given day and today's volume is recorded at 900762.
Thomson Reuters Corporation (Thomson Reuters), is a provider of information for the world?s businesses and professionals. Shares of TRI traded higher by 0.83% or $0.32/share to $38.76. In the past year, the shares have traded as low as $33.08 and as high as $42.10. On average, 916927 shares of TRI.TO exchange hands on a given day and today's volume is recorded at 477660.
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