A fresh example of something we see with increasingly frequency in the options market….unusual heavy volume trades seemingly out of the blue in names that normally have modest activity. Latest case in point is Tiffany (TIF) which over the weekend received a $120 per share cash takeover proposal from European luxury good seller, LVMH. Tiffany has been trading for quite a long period of time in the low to mid $90’s per share. On Friday afternoon, 1000 of the Nov 100 calls and 1000 of the Nov 105 calls were purchased in sweeps that for the day produced aggregate call option volume in Tiffany of over 11,000 contracts. That is about 6 times its normal volume on any given day. With the stock closing today at $130, that produced enormous 1 day profits of $25 and $22 per contract for the above mentioned blocks. Either someone just got lucky or someone knew something. I’ll bet heavily it was the latter. I will also bet heavily that the SEC has no clue this type of insider trading is going on with increased regularity. Asleep at the wheel……