Research In Motion sees long shots
Pete Najarian | [email protected]
optionMONSTER's Heat Seeker system yesterday found some curious prints in the September 27 calls, which were bought for $0.22. That's a crazy high strike for a stock that closed the session at $15.61, up 3.93 percent.
These long calls lock in the price where investors can buy stock in the smartphone maker. Because the options are much cheaper than the shares, they can result in significant leverage if BBRYmoves in the right direction. The September 19 calls were also active but much closer to the money. (See our Education section)
Apple was also in focus yesterday with a gain of more than 3 percent. There is no comparison between these companies in most metrics, but they do have similar products in certain categories, and BBRY has frequently been an outperformer. In addition, Jefferies issued a positive note on Research In Motion yesterday.
Almost 120,000 BBRY calls traded versus 44,500 puts yesterday, as its total option volume was more than triple its daily average.
Disclosure: I own BBRY shares.
(A version of this post appeared on InsideOptions Pro yesterday.)