Around the Street

• Posted by Adam Warner
• on November 3rd, 2009

Some interesting trades yesterday via Cuttone and Company.

A large call spread traded in EEM (iShares MSCI Emerging Markets Index). The customer purchased the January 2010 43 calls 51,700 times @ $.75 vs. selling the January 47 calls 51,700 times @ $.17. The maximum profit is $3.42 if the equity reaches $47 by the January expiration. This was definitely an opening trade, as the open interest did not support the volume.

 BEBE (bebe stores, inc.) was also on the bulls’ radar as March 2010 calls traded massive volume. The last sale in the common was $6.42,  yet 35,500 of the March 10 calls traded. One lot  of 29,000 was purchased @ $.20c,  tied to common.

 RIMM (Research In Motion Limited) March 100 calls were being scooped up at a rapid pace. Over 41,000 contracts traded on the day, doubling open interest. The largest lot was 19,000 contracts,  purchased for $.24.

I guess we have a little theme here; cheapo calls speculation out to March. Clearly someone has seen a FlashForward to next spring and sees a woman in revealing clothes texting on her new Blackberry Storm 2.

Or alternatively, it’s just plain old cheap call speculation on a couple battered names.

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