RHT – Red Hat, Inc. – Renewed takeover speculation inspired increased investor demand for near-term call options on the software company and fueled a 15.9% increase in the stock’s overall reading of options implied volatility to an intraday high of 38.40% in morning trading. Red Hat’s shares are currently up 0.50% at $32.70 just before 2:00 pm ET, but earlier its shares jumped 2.95% to an intraday peak of $33.50. Investors hoping RHT’s shares will continue to increase ahead of September expiration picked up approximately 1,200 calls at the September $35 strike for an average premium of $0.59 per contract. Call buyers at this strike stand ready to profit should Red Hat’s shares surge 8.8% over the current price of $32.70 to first exceed the current 52-week high of $33.99, and ultimately surpass the average breakeven point to the upside at $35.59, by expiration day next month. Bulls also purchased roughly 1,000 call options at the higher September $36 strike for an average premium of $0.33 a-pop. Investors long the calls make money if RHT’s shares jump 11.1% in the next several weeks to trade above the effective breakeven price of $36.33 by September expiration. Red Hat’s overall reading of options implied volatility has tapered off slightly, but still stands 11.5% higher on the day at 36.84%, as of 2:05 pm ET.