M&A bustle sparks uptick in single stock options

Short-dated option volumes on event-type single stocks have surged due to the recent intensification of mergers and acquisitions activity, led by US food and beverage producer Kraft’s approach for UK confectionary company Cadbury.

The uptick in option volumes has centred on names such as Dutch telecommunications company KPN, and UK gas company BG Group is expected to follow suit in the weeks ahead.

“Kraft’s approach for Cadbury has triggered a renewed interest in event-type names,” says London-b