UnumProvident rises on takeover speculation
UnumProvident Corp. (NYSE:UNM - news) shares rose nearly 8 percent on Friday on speculation the group life insurance company was going to be acquired.
"UNM Provident is a rumored takeover candidate, which is causing heavy call buying," said William Lefkowitz, options strategist.
A large number of options on UnumProvident were purchased in the derivatives market, after which the company's shares rose, traders said.
"Anytime the market sees a large buyer of call options, they immediately assume that there is a takeover story," said Steve Sosnick, equity risk manager at Timber Hill, a division of Interactive Brokers.