Research In Motion is soaring today, and options action is through the roof.
The maker of Blackberry smart phones had declined steadily since mid-2008 as Apple iPhones and Google's Android devices devoured its once-dominant market position. The shares spent about five months basing out, and then started rallying in late October.
Those gains accelerated yesterday, when the Canadian-based company surged 18 percent on the Toronto Stock Exchange amid optimism toward its newest phones. Trading was closed in the U.S.
for Thanksgiving, and the bulls are catching up today, sending RIMM higher by 14 percent to $11.70 in afternoon trading.
Options activity is through the roof, with some 257,000 contracts changing hands -- almost 7 times the average daily volume. It's also the second-busiest stock after Apple, while it normally isn't even in the top 10.
Calls dominate puts by more than 2 to 1 as investors position for further gains, despite RIMM's 80 percent rally since late September. The 10.50 weekly calls expiring today lead the action, followed by the March 18 calls and the January 12s. Most of the puts that trade are sold, which also reflects bullishness toward the stock.
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