Interesting Call Buys in China Unicom (CHU) and Deutsche Bank (DB)

As expected, things are pretty slow in the unusual options trades this Friday morning.  But that doesn’t mean there hasn’t been any!  Two of the more interesting trades were seen in the calls of China Unicom (CHU) and Deutsche Bank AG (DB).

It’s always unusual when you get a call buy in a foreign ADR issue, so this mornings trade in China Unicom (CHU) is very interesting.  A trader bought 1,000 CHU October $19 calls, paying the ask of just 30 cents. Not exactly earth shattering in it’s size, but size isn’t everything, right? That makes this little bet a transaction value of just $30,000. Weird that this wasn’t indexed.

China Unicom (CHU) is currently trading at $17.79 up just 5 cents on the day. The stock is actually off it’s highs since the call buy.  CHU has a 52 week high of $18.20, and a low of $11.71 for the year.  It’s traded just 86,000 shares so far today versus it’s average volume traded of 450,000.  Not exactly an exciting stock is it?  Which makes this little call buy all the more unusual.

china-unicom-chu-logoChina Unicom (CHU)has seen some analyst action the past week with one upgrade, one downgrade and one reiterated Neutral.  Could well be that Morgan Stanley or Jefferies is about to publish an upgrade and or raise the price target on this little known company.

We like this for a small gamble.

Meanwhile another trader thinks that  Deutsche Bank AG (DB)is going higher, with conviction.  The trader bought 4,999 of the DB January $35 calls. They paid $2.30 at the ask, for those calls that expire in January of 2015.  That makes for a transaction value of almost $1,150,000. A big bet for a big company.

Deutsche Bank AG (DB) is currently trading at $35.01 up just 14 cents on the day, though well off its earlier high of $35.22 since the call buying.  DB has a 52 week high of $54.49, and a low of $32.52 for the year.  It’s traded 653,000 shares today so far, and normal volume is 1.88 million shares on average.

Deutsche Bank AG (DB) announces quarterly earnings October 29, but we suspect this call buying has no relation to that event.  Clearly someone knows an upgrade is coming?  It’s a big bet, but we are not feeling the love on this one right now.