The unusual call buys are really heating up on this first trading day in September 2014. Two of the most unusual call buys in late morning, early afternoon trading were seen in RF Micro Devices (RFMD), and Twitter (TWTR).
RF Micro Devices (RFMD) is no stranger to large unusual options activity, and there was another one today. One trader bought 10,000 October $14 calls just after 11 am today. That trader paid 30 cents for those calls making for a transaction value of $300,000. Call volume has surged since to over 11,000 contracts traded. All these trades were opening as the open interest was just 15 before today. Right now those same calls are bidding 25 cents, and ask is still 30 cents so you can still get in on this options play in RFMD if you’re so inclined. Last trade was 29 cents. We’re still considering this one.
RF Micro Devices (RFMD) is currently trading at $12.67 up just 20 cents today. RFMD has a 52 week high of $12.67, and a low of $4.50 on the year. So clearly this trader thinks RFMD is ready to break out from it’s range. Maybe Stifel Nicholaus is about to announce coverage with a big premium on the price target? You just never know. RFMD is not scheduled to announce earnings until October 20, after these options expire on the 18th.
It seems like every day for the past month there has been a large call buy in Twitter (TWTR) options. And today is no different. This time a trader bought 1,000 December $52.50 calls in TWTR just before 11:30 am. That trader paid $4.70, but you’ll only have to pay a little more now. ast the December 52.5’s are asking $4.75 last trade at $4.65. This is just a continuation of bullish sentiment for Twitter, and we personally have made enough on previous call buys over the past 2 weeks that we are just not that enthused about this one today.
Twitter (TWTR) is currently trading at $51.01 up $1.26. The 52 week high for TWTR is $74.73. Twitter (TWTR) isn’t scheduled to report earnings until late October but clearly this call buy and all the others before it recently, has nothing to do with earnings. This freight train has been a great ride, but we’ll move on to greener pastures now.
Unlike the Twitter (TWTR) call buy, we are interested in RFMD and are in at 30 cents.