BREAKING: DXC Technologies stock 𝗳𝗮𝗹𝗹𝘀 -𝟭𝟬% on no news, just after unusual options activity was reported on CNBC in the expiring MARCH 20 30$ options from the stock

What happened? - We will explain that in this thread

Share your suggestions down in the comments

$DXC

What is the context of this strange price variation?
First, in December of the last year, a french cloud technology company named Atos was reported to be attempting a takeover of DXC tech. Days after, DXC announced it'd received an unsolicited acquisition proposal from Atos.

On the news, DXC Technologies stock jumped almost 12%, reaching 30$ in price per share. No more updates were given by any of the companies. No one never announced that negotiations would start between both parties. Neither did DXC give any public answer to the offer.

That was the background, until today CNBC section dedicated to unusual options activity reported that someone bought 10,000 DXC call options expiring the 20th of March. Many retail investors were adding these call options too because of the report and the strange volume increase.

Just after close, on 3:22 p.m. the stock price started a decline that would lure a ton of investors trying to buy the "bottom". This decline would be of almost 10% and ended only at 3:50 p.m.

Currently, the stock has fallen another -4.08% after hours.

DXC Technologies is set to report earnings in three days.

Many are suggesting the decline could be an attempt to persuade investors to panic sell. Others think that either DXC rejected the acquisition proposal or Atos walked away. Other suspicions point to leaked earnings.

It is difficult to prove which of these theories is truly right, since no news have been released.

Personally, I think Atos walked away mainly because of the impact of the acquisition proposal in Atos share price back in the day. Its stock dropped more than 15%.

However, since Atos was attempting to take over DXC buying its shares, this could be an attempt to lure investors into selling and then pick those shares up.

Likewise, another possibility could be that the investor who bought the 10,000 calls traded with insider information ...

and after the unusual activity was reported, he sold his stake and his calls trying to prevent the SEC from intervening.

End of the thread.

Thank everybody for taking the time to read until the end.
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By @broadcast_real.

:)