" title="RRI : Stock Quote, News and Research" class="showrtquote">RRI - RRI Energy, Inc. –
Yesterday afternoon one investor purchased 10,000 calls at the December
4.0 strike for 1.30 apiece despite the fact that shares were down 3% to
$5.10. The seemingly contrarian strategy suggested shares of RRI were
likely to rebound by expiration in December. Yet, the investor only
needed to wait 24 hours because the stock is currently trading 2%
higher to $5.25. The same individual was rewarded today for assuming an
optimistic stance on RRI because he sold all 10,000 calls this morning
for 1.45 apiece. Net profits on the closing sale amount to 15 cents per
contract for a grand total of $150,000 – not bad for one day's work.
WFR - MEMC Electronic Materials, Inc. –
Option traders driving call volume in the November contract are in fact
taking bullish positions on the stock by purchasing the options. We
noted earlier today that heavier than usual option activity was driving
implied volatility higher. Volatility is now up 20.25% to 68.92% versus
this morning's reading of 65.16%. Shares retreated slightly by
lunchtime but are still up more than 1% to $12.45. Some traders
targeted the in-the-money November 11 strike where 1,400 calls were
picked up for an average premium of 1.49 apiece. Other investors
selected the now in-the-money November 12 strike to take ownership of
2,900 calls for about 83 cents each. Bullish individuals expecting
shares to continue higher paid an average of 49 cents to purchase 6,100
calls at the November 13 strike. The stock must rise another 8% to
$13.49 before investors holding the November 13 strike calls breakeven.
CAR - Avis Budget Group, Inc. –
Shares of the rental car company surged 8% to $9.12 today after the
firm posted third-quarter earnings of 54 cents per share. Avis Budget
Group reported staggering losses of $9.91 per share in the same period
last year. Option players populated the November and December contracts
with fresh call trading. It looks like some 5,100 call options were
purchased at the November 10 strike for an average premium of 48 cents
apiece. Next, approximately 1,000 calls were coveted at the December 10
strike for 80 cents premium.
