Confluent Stock Soars on Takeover Rumors

Core Insights - Confluent Inc (NASDAQ:CFLT) stock is experiencing a significant surge, increasing by 11.2% to $23.05 following reports of the company exploring a potential sale, attracting interest from private equity and tech firms [1] - The stock has rebounded 46% from a record low of $15.64 reached in late July, although it remains down 17.4% year-to-date [2] - Short interest in the stock has risen, now representing 7.9% of the available float, with a cover time of nearly three days based on average trading volume [2] Options Activity - Options traders are actively participating in the takeover speculation, with a notable volume of 16,000 calls and 1,037 puts exchanged, significantly higher than typical levels [3] - The most popular options are the October 22 call and the 24-strike call, indicating strong interest in potential upward movement [3] Volatility and Performance - CFLT has demonstrated strong performance for options buyers over the past year, with a Schaeffer's Volatility Scorecard (SVS) of 85 out of 100, indicating that the stock has exceeded volatility expectations [4]