All WW spokeswomen– lookin’ at you, Jennifer Hudson– are suspects.

A Weight Watchers International Inc. options investor earned a three-day paper profit of about $7.8 million after the stock surged the most ever today following the company’s higher-than-estimated forecast. A block of 4,273 February $45 calls were purchased for 95 cents each on Feb. 14, when the stock closed at $44.08. Calls give the right to buy 100 shares, meaning the contracts cost about $400,000. The Weight Watchers calls jumped 20-fold to $19.30 at 1 p.m. New York time today, driving their value up to $8.2 million.

“It was either the luckiest trade in a year and a half or it was someone who had inside information,” said Ophir Gottlieb, head of client services at Livevol Inc., a San Francisco-based provider of options market analytics. He cited the choice of a contract that was the closest out-of-the-money call to the stock price, and the options having an open interest more than quadruple the size of any other contract.

Weight Watchers Options Trade Makes $7.8 Million In 3 Days [Bloomberg]

42 comments (hidden to protect delicate sensibilities)
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Comments (42)

  1. Posted by NakedShort | February 17, 2011 at 8:21 PM

    With 99.9% certainty my answer is Meredith Whitney Advisory Group

    -Watson

  2. Posted by Anal_yst | February 17, 2011 at 8:27 PM

    Or someone just put a fat bet that they’d beat out earnings…

  3. Posted by guest | February 17, 2011 at 8:27 PM

    Everyone’s doing it…who cares anymore.

  4. Posted by HAL 9000 | February 17, 2011 at 8:31 PM

    Newcomer.

  5. Posted by Alex T. | February 17, 2011 at 8:32 PM

    I’m sorry – you didn’t phrase your answer in the form of a question, so I can’t give you credit and I have to move on to the next contestant: STAR?

  6. Posted by NakedShort | February 17, 2011 at 8:35 PM

    With 89.7% certainty I can say your mother is a horse fisting whore Trebek.

    -Sean Connery Watson

  7. Posted by Guest | February 17, 2011 at 8:35 PM

    was that wrong? was i not supposed to do that?

  8. Posted by Guest | February 17, 2011 at 8:36 PM

    The Oxygen Network?

  9. Posted by Anonymous | February 17, 2011 at 8:37 PM

    Heavy like a Tyson blow to the dome…

  10. Posted by Guest | February 17, 2011 at 8:38 PM

    That’s S-Words not swords Mr. Connery

  11. Posted by Guest | February 17, 2011 at 8:39 PM

    And I’m BACK!

    Nails

  12. Posted by GGGuest | February 17, 2011 at 8:44 PM

    I see nothing wrong here.

    – Stevie C

  13. Posted by Guestosaurus | February 17, 2011 at 9:07 PM

    yep – gut feeling

  14. Posted by Sgt, Frank Drebin, SEC Squad | February 17, 2011 at 9:17 PM

    I entered the offices of Weight Watchers and was shown to a meeting room by a surly man weighing near 375 pounds. It looked like I’d need to take a train to get on his good side. I wondered if, when he awakend each morning, if it was in sections. He had more chins than a Hong Kong hedge fund. When he gazed at me it looked like he was staring over a stack of pancakes. I reflected on the time I was seeing a BBW. When she fell in love, she broke it. Tragedy ensued though. She got a raging, flesh eating bacterial infection and the doctors gave her 15 years to live. Thank God for Weight Watchers though: I knew an obese comic and the only thing he could crack-up was the stage under him. This would be a tough case to get my arms around.

    Sgt. Frank Drebin
    Detective Lieutenant
    SEC Squad

  15. Posted by Sgt, Frank Drebin, SEC Squad | February 17, 2011 at 9:17 PM

    I entered the offices of Weight Watchers and was shown to a meeting room by a surly man weighing near 375 pounds. It looked like I’d need to take a train to get on his good side. I wondered if, when he awakend each morning, if it was in sections. He had more chins than a Hong Kong hedge fund. When he gazed at me it looked like he was staring over a stack of pancakes. I reflected on the time I was seeing a BBW. When she fell in love, she broke it. Tragedy ensued though. She got a raging, flesh eating bacterial infection and the doctors gave her 15 years to live. Thank God for Weight Watchers though: I knew an obese comic and the only thing he could crack-up was the stage under him. This would be a tough case to get my arms around.

    Sgt. Frank Drebin
    Detective Lieutenant
    SEC Squad

  16. Posted by Sgt, Frank Drebin, SEC Squad | February 17, 2011 at 9:17 PM

    I entered the offices of Weight Watchers and was shown to a meeting room by a surly man weighing near 375 pounds. It looked like I’d need to take a train to get on his good side. I wondered if, when he awakend each morning, if it was in sections. He had more chins than a Hong Kong hedge fund. When he gazed at me it looked like he was staring over a stack of pancakes. I reflected on the time I was seeing a BBW. When she fell in love, she broke it. Tragedy ensued though. She got a raging, flesh eating bacterial infection and the doctors gave her 15 years to live. Thank God for Weight Watchers though: I knew an obese comic and the only thing he could crack-up was the stage under him. This would be a tough case to get my arms around.

    Sgt. Frank Drebin
    Detective Lieutenant
    SEC Squad

  17. Posted by BBWfever | February 17, 2011 at 9:20 PM

    Should “score big” and “Weight Watchers” be in the same sentence? Please discuss while I excuse myself with the cup.

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    Hey, man, I got a story and picture about me on Dealbreaker today!! Yeah, no shit, man. Dealbreaker!! Can you believe it. Here’s how you find it: The story about me is in between a story about a guy caught with his fist in a horse’s vagina and collard greens at Citi’s “Black History Month” cafeteria table!!

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    – SAC

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