Rambus (RMBS) jumps $1.06 to $5.99 on volume of more than 2.2 million shares after the chipmaker won a ruling in its patent case against SK Hynix. By way of comparison, typical share volume in RMBS through the first hous is only about 200,000. So share volume is running 11X the expected and options action includes 3,765 calls and 450 puts. Oct and Nov 5, 5.5 and 6 calls are the most actives. In contrast to what one might expect on the heels of a court ruling, implied volatility is RMBS is moving up, not down, today. 30-day ATM vols are up 28 percent to 65. The issue of the damages SK Hynix will need to pay Rambus is still being determined.
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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.