Action in Lions Gate Entertainment

12:20pm (EST) Our favorite corporate raider, Carl Icahn, is at it again. This time he is targeting Lions Gate Entertainment (LGF, $5.61, up $0.39) which is up 7% today. The billionaire investor has raised his stake from 4% in October when the stock was at $7 to nearly 17% saying the company is undervalued. I’m not recommending any options on the news but it was interesting that the only “active” chain is the 2010 January 5 calls (YMEAA, $1.40, up $0.10) which have traded over 10,000 contracts. There is option volume at other strike pricess and closer months but someone has likely made a big bet on Carl’s actions with these options.

[hidepost] He has said that he may increase his stake and shake up the board so it will be interesting to see where this one is headed. Although people don’t talk about it much, his dealings with Yahoo (YHOO, $15.29, down $0.31) have not produced any results. I follow a few other companies in the Entertainment sector but I’m not a big fan of Lions Gate. [/hidepost]

The market is up today on some good unemployment insurance news and because our boy Timmm-ie (Timothy Geithner) is speaking about the Financials. Rick Rouse Rick@TheOptionInvestor.com]]>

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