Research in Motion Craters; Call Spreads Purchased (RIMM)
Shares of Research in Motion LTD (NASDAQ: RIMM) are lower on the session by 7.64%, currently trading at $54.10. The stock is soft today after a lackluster earnings report. Shares are now trading at fresh 52-week lows.
Options traders seem to be betting that a short-term bounce could ensue. The July $55 call is seeing some purchases today; volume is currently at 7,700 contracts on open interest of 1,890 contracts. In addition to that, the July $60 call is seeing call sales, volume currently at 5,300 contracts on open interest of 20,007 contracts.
Some of today’s volume on those strikes has been linked via call spreads. It is possible that these spreads were purchased as hedges to short shares, though.
Research In Motion Limited is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information, including e-mail, phone, short message service (SMS), Internet and intranet-based applications.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.