OptionsHouse

Options Trading News

January 4, 2013  Fri 10:47 AM CT

VRNG: SEE CHART GET CHAIN FIND STRATEGIES
Vringo is rebounding at key levels, and one large trader is looking for more gains in the mobile-phone software developer.
 
Nearly 30,000 VRNG options have traded this morning, compared to a daily average of fewer than 4,000 in the last month. Most of the action is in a three-way call spread.

A trader sold 4,000 January 4 calls for $0.19 against open interest of more than 10,000, according to optionMONSTER systems. At the same time, he or she bought 4,000 May 4.50 calls for $0.66 and sold 4,000 May 8 calls for $0.20 in volume that was above the open interest in both of those strikes, indicating new activity.

This trader is selling the out-of-the money January calls, which expire in two weeks, and using the proceeds to help pay for a new call vertical spread in May. (See our Education section)

VRNG is trading at $3.59, off its morning high of $3.83 but still up 2.57 percent a day after breaking above its 200-day moving average. Shares bounced off support around $2.65 last week and are now back to where they were trading in late November.
Share this article with your friends


OptionsHouse

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »