Sonus Networks Sees Unusual Call Buy (Nasdaq:SONS)

Sonus Networks (SONS) just had an unusual call buyer gobble up 2579 January 2015 $5.00 calls in an opening trade.  The trader paid around $0.25 per call, at the ask.

This is a pretty big bet of over $64,000 for a stock that is currently trading $3.91, up 9 cents on the day.  Sonus Networks (SONS) has been on a bit of a tear the past week, so is this call buyer a little late to the party, or does he know even bigger things are coming down the pipe soon?

Sonus Networks (SONS) is seeing lower than usual volume as it trades up 11 cents to $3.93 now.  It’s got a 52 week low of $2.68 and a high of $3.98.

Sonus Networks (SONS) does announce Q2 earnings on July 30, and 9 analysts providing coverage of SONS expect a profit of $0.01 for the quarter.  They currently have an OVERWEIGHT rating and a price target of $4.52.  So there is some upside to this call buyer, but we think some bigger catalyst is expected from the company to drive it over the $5 strike price, likely much sooner than the January expiration.

We’ll have to wait and see on this one, and may look to purchase some of the common instead of playing the Jan calls.

Here’s the chart on Sonus Networks (SONS):