TiVo, Inc. (TIVO) –
Shares of the provider of technology and services for digital video
recorders are soaring 8.5% higher to stand at the current price of
$12.44. Investors expecting continued bullish movement in the price of
the underlying purchased call options across multiple contracts.
Near-term optimists picked up 6,500 calls at the November 12.5 strike
for 86 cents each. Meanwhile, the higher November 15 strike had 1,600
calls coveted for about 25 cents apiece. Other traders looked to the
December 12.5 strike where it seems some 5,000 calls were purchased for
approximately 95 cents each. Finally, call spreads were transacted in
the February 2010 contract. Investors purchased 3,000 calls at the
February 12.5 strike for an average premium of 1.41 each, and sold
3,000 calls at the higher February 15 strike for about a dollar apiece.
Option implied volatility on TIVO jumped 18% from an opening reading of
62% to an intraday high of 73%.
Oracle Corp. (ORCL) –
The software company is trading just 65 cents off the 52-week high of
$22.90 today with shares up 0.25% to $22.25. Volume of 19,811 calls at
the out-of-the-money November 23 strike exceeds existing open interest
at that strike of 16,224 lots. The call activity appears to be the work
of bullish investors buying approximately 14,500 calls for an average
premium of 31 cents apiece. The December contract has also attracted
the attention of option bulls. It looks like 9,000 calls were scooped
up at the December 24 strike for about 40 cents each. Investors holding
these contracts will profit by expiration if shares of ORCL surge 9.5%
from the current price to $24.40.
Microsoft Corp. (MSFT) –
Investors are piling into call options on the world's largest software
maker following first-quarter earnings. The firm exceeded average
analyst expectations of 32 per share by posting profits of 40 cents per
share for the quarter. Shares of MSFT surged to a new 52-week of $29.20
– a 9.8% increase over the stock's closing price – at the start of the
trading day. Currently shares are slightly lower, though still up 7% to
$28.44. Call options are the clear favorite with approximately 45,000
calls purchased at the November 30 strike for an average premium of 35
cents per contract.
