OPTIONS BEAT-Heavy trade in aQuantive options raises questions

By Doris Frankel

CHICAGO, May 18 (Reuters) - Options trading in aQuantive Inc. AQNT.O surged in the days before Microsoft Corp. (MSFT.O: Quote, Profile, Research, Stock Buzz) said it would buy it, leaving a huge windfall for some investors and raising questions about whether the news leaked.

While trade in aQuantive options had already picked up since Google Inc. (GOOG.O: Quote, Profile, Research, Stock Buzz) struck a deal to buy DoubleClick last month, volume on Thursday exceeded that daily average by nearly 25 percent. Volume was particularly heavy in a series of calls due to expire within 48 hours of when they were bought.

That has at least one options trader flagging the possibility of insider trading ahead of Microsoft's $6 billion deal to buy the Web advertising company, unveiled on Friday.

"The option call buying on Thursday was typical of takeover trading when information has leaked," said Jon Najarian, co-founder of Web site optionmonster.com in Chicago.

The U.S. Securities and Exchange Commission declined to comment.

Microsoft said it would pay aQuantive shareholders $66.50 a share, an 85 percent premium to the closing price of $35.87 on Thursday. The stock surged 78 percent to $63.79 on Friday.

The real money was made on the options, however. Some lucky players swooped in on Thursday to buy May calls for the right to buy aQuantive at $35 by Friday's close. They also focused on calls granting the right to the shares at $40 by mid-June.

The May 35 calls closed at $1 on Thursday, compared with Friday's opening price of $28.40, bringing in a tidy windfall of $2,740 per contract. The June 40 calls, which fetched 55 cents a contract on Thursday, opened at $24.30 on Friday.