Volume Spike Investor

IMAX Corp (IMAX)  is trading 5,191 calls off the bell, 6X average volume in 10 minutes of trade, as shares gain 5% and IV soars 17%.  Most of the action is offer side buying in January $12.50 and March $15 calls.  Shares are breaking out on volume to 5 year highs, and expect a strong holiday movie going demand.  James Cameron’s Avatar is set to be released in IMAX on December 18th.  The stock is also on the move as at 9:53 AM EST there have been 382,000 shares traded versus an average daily volume of 520,000 shares.  The stock is up 5.35% at $12.39, and the stock actually just put in a new 52-week high today at $12.49.  The 52-week low” $2.67.  IMAX has been a takeover stock in the perpetual rumor mill before, but today’s action looks more event-driven than speculation or rumor-driven trading.

JOE KUNKLE, OptionsHawk.com