Continued Call Buying Seen in Research In Motion (RIMM) Ahead of Earnings
Options market analysts at Susquehanna Financial noted continued call buying in Research In Motion Ltd. (Nasdaq: RIMM) into earnings on 12/17. The action suggests bets are being placed on a big upside move in the share price.
The firm noted that within the first hour of trading, investors have bought 25,000 January 80 (.10d) calls for $0.43 (delta neutral). Investors have now bought a total of ~65,000 of these calls over the past month, including 20,000 this past Friday which traded alongside buyers of 20,000 of the lower strike January 70 (.20d) calls.
On this the firm said, "In general, this trading suggests investors are using these relatively inexpensive calls in order to position for significant move to the upside in shares over the coming months."
Shares of RIM are up 3% today on reports inroads are being made in selling the BlackBerry in China.
The firm noted that within the first hour of trading, investors have bought 25,000 January 80 (.10d) calls for $0.43 (delta neutral). Investors have now bought a total of ~65,000 of these calls over the past month, including 20,000 this past Friday which traded alongside buyers of 20,000 of the lower strike January 70 (.20d) calls.
On this the firm said, "In general, this trading suggests investors are using these relatively inexpensive calls in order to position for significant move to the upside in shares over the coming months."
Shares of RIM are up 3% today on reports inroads are being made in selling the BlackBerry in China.
You May Also Be Interested In
- Popular stocks with increasing volume: DIS AMC RIVN COIN CCL JPM INTC PFE MU FCX SNOW
- Guardant Health (GH) call put ratio 7.4 calls to 1 put as share price up 11.5%
- Boeing (BA) PT Lowered to $230 at Susquehanna on lower estimates
Create E-mail Alert Related Categories
Insiders' Blog, OptionsRelated Entities
Susquehanna International Group of CompaniesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!