aQuantive, Inc. (AQNT) - The Breakout Turns Into a Buyout

Last week I noted that shares of aQuantive, Inc. (AQNT) were hitting a new annual high after posting better-than-expected earnings and offering an upbeat forecast. This continued a bullish breakout pattern. I also noted that the sentiment profile from analysts was encouraging. It looks like none of that matters now though...

Headlines are just hitting the wires that Microsoft (MSFT) is going to acquire AQNT for 66 per share. The stock closed at 35 last night - wow...

I just looked over yesterday's option activity and noticed more than 3000 contracts of the June 40 calls traded at prices ranging from 30-60 cents. Just over 2000 of that translated into open interest today. If the stock opens near the buyout bid, those options would be worth $25 or so. I wonder if those were straight out buys or covered calls?

If they were buys, that is quite a nice one day return - somewhere in the neighborhood of 4000% to 8000% percent, depending on the entry. If it is a covered call, the writer "gets" to sell their stock at 40. I don't even want to think about what it would be for a naked call writer...