Investors are crowding the options arena on the Blackberry maker today with shares in Research in Motion rising as much as 9.5% earlier yesterday afternoon. The price of the underlying stock climbed the most in more than 10 months after an analyst remarked that the company's Playbook tablet computer could give rival Apple Inc.'s iPad a run for its money.
Investors are buying more of those OTM calls than selling. Bullish traders are also selling put options at the November $52.5 and $55 strikes, which suggests they expect shares to stay afloat, at least through expiration next month. Some investors initiated bull call spreads:
- buying approximately 2,000 calls at the December $65 strike for an average premium of $0.79 each
- selling about the same number of calls at the higher December $75 strike for an average premium of $0.21 apiece
Investors exchanged more than 296,000 option contracts on Research in Motion before 3:30 p.m. in New York. This stock may beworth looking to invest in with the rival outlook of the Playbook Tablet!