RIM is rallying on heavy volume of more than 20 million shares. The stock is up 75 cents to $8.06 on no apparent news. Some are attributing the strength to a Globe and Mail story that mentions Samsung might license RIM’s BB10 operating system. The speculation was also reported on allthingsd. But the article mentions comments from a Jefferies analyst that were out yesterday. For whatever reason, share volume is 7X greater than the normal levels for the first 30 minutes of trading (which is about 2.9 million shares). Options on the Blackberry-maker are busy as well. 63,000 calls and 94,000 puts so far. At this rate, RIMM would trade about 600K contracts today. Aug and Sep 8 calls, which are now in-the-money after today’s rally, are the most actives. The largest trade was initiated two minutes into trading today when was still trading for $7.65. One savvy player bought 10,000 Sep 8 calls for 52 cents to open on ISE. ISEE is reporting an opening play for a customer account. 13,100 now traded and the market is 71 to 73 cents.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.