Rackspace Stock/Volume Alerts (RAX)

Posted in General, Options 
November 2nd, 2010

Whenever there is one merger in tech, it seems that everyone jumps right back to the cloud for M&A targets.  Despite the issue that Rackspace Hosting, Inc. (NYSE: RAX) management has gone as far as saying it will stay independent when asked about it being a possible M&A candidate, shares are up and options and stock volume is up today on hopes of a deal potentially coming its way.  Here is the NOV-2010 CALL activity today as of 12:45 PM EST:

CALL$    Vol.     OpInt
25.00    597    3,237
26.00    647    3,384
27.00    542    2,143
28.00    1,784    464
29.00    4,815    143
30.00    1,836    333

PUT volume is also higher in the NOV-2010 contracts:

PUTS$    Vol.    OpInt
24.00    1,199    3,058
25.00    1,478    2,049
26.00    1,489    986

As far as the stock, Rackspace is up 3.5% at $26.26 on more than 5.6 million shares.  A new 52-week high was put in today as well and the new 52-week range is $15.15 to $27.94.  Average daily volume is only about 2.7 million shares.

JON C. OGG

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