Options on Molson Coors Brewing Co. (Ticker: TAP) are seeing heavy trading again today on speculation the company may buy MillerCoors, a joint venture between Molson Coors and SABMiller. The stock was also helped to fresh record highs today after BofAML upgraded the stock to ‘Buy’ from ‘Underperform’ and raised their price target on the stock to $80.00 from $55.00. Shares in Molson Coors earlier today rose as much as 2.25% to touch a record high of $72.30.
The most traded options contracts on TAP today are the Oct 75.0 strike calls, with upwards of 17,000 calls changing hands against open interest of 2,278 contracts. The single largest print was a block of 9,500 of the 75.0 strike calls, which appears to have been purchased at a premium of $1.85 per contract. The calls look for shares in Molson Coors to rise another 7.0% over the current price of $72.00 to top the breakeven price of $76.85 by October expiration. Overall volume in TAP options is nearing 35,000 contracts heading into the close, which is roughly 1,500% of average daily options volume of around 2,300 contracts.
