Crazy busy day today on the unusual call option trades, which is no surprise, as the smart money gets back to business after the last long weekend of the summer. Two of the most unusual call buys this morning took place in Vodafone Group (VOD), and little known Jive Software Inc (JIVE).
In trading this morning there was a large call buy in Vodafone Group (VOD). One “smart” trader bought 2,500 April $38 calls mid morning today. That trader paid 98 cents for those calls making for a transaction value of $245,000. Call volume has surged since to 9,500 contracts traded. All these trades were opening as the open interest was just 22 before today. Right now those same calls are bidding 85 cents, and ask is $1.10 so you can still get in on this options play in VOD. We are so inclined as we do love those unusual large call buys in foreign firms.
Vodafone Group (VOD) is currently trading at $34.40 up just 6 cents today, and trading down from it’s high earlier today of $34.59. VOD has a 52 week high of $72.55, and a low of $31.87 on the year. So clearly this trader thinks VOD has bottomed out. And why not, this very profitable telecom company has a very nice dividend yield to support it’s lagging share price.
The second interesting trade was earlier this morning in Jive Software Inc (JIVE). This one saw a trader come in and buy 5,692 September $7 calls in JIVE just after 10 am. That trader paid 25 cents, but you’ll have to pay a little more now. We found the trade rather unusual, which means we jumped in for some at 30 cents. The Sept $7 calls are now trading 30 cents bid to 40 cents ask, last at 36 cents. There is still no news related to JIVE, so it could still be worth getting into, but you’ll clearly have to pay well up from the original trader’s entry point.
Jive Software Inc (JIVE) is currently trading at $7.15 up .17 cents. The 52 week high for JIVE is $13.57. Jive Software Inc (JIVE) isn’t scheduled to report earnings until October 28, 2014 so clearly this call buy has anything to do with earnings given that these options expire on Sept 20th.
We have to assume this has something to do with an analyst upgrade and or price target raise, some other material fact yet to be released to the public, or maybe a potential buyout?
We like both of these call buys so are in for some fun.