Rambus Rumors Drive Stock/Options Volume (RMBS, NVDA)

Posted in General, Options 
August 19th, 2009

Rambus Inc. (NASDAQ: RMBS) is up over 7% at $18.55 at 2:00 PM EST on 3.6 million shares.  This already represents 140% of average daily volume and the reasons cited are rumors of a settlement on a case with NVIDIA Corporation (NASDAQ: NVDA).  Be advised that this move now has Rambus at the higher-end of its 52-week trading range of $4.95 to $19.65.  NVIDIA shares are down 1% at $13.20 but only on half of a day’s average volume.  Rambus is one of these intellectual property companies which relies on patent and intellectual property licenses in the semiconductor and chip sector for effectively all of its revenues. We are also seeing elevated CALL OPTION activity in the August options which expire this Friday:

STRIKE Volume Op.Int.
$17.00    1,032  11,580
$18.00    3,923  11,958
$19.00    4,082  6,302
$20.00    3,709  10,384

SEPTEMBER 2010 CALL option activity is elevated as well:

STRIKE Volume Op.Int.
$18.00    5,021  1,485
$19.00    4,640  1,092
$20.00    4,039  2,917
$21.00    1,110  1,078
$22.00    2,640  1,926

-JON OGG

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