RMBS – Rambus Inc. – The announcement between memory-maker Rambus and graphics-maker Nvidia on certain licensing rights created early demand for shares in Rambus driving its share price to $19.80. And while the stock is still almost 5% higher on the day it appears to be sinking fast and erasing gains. Option investors appear to be selling call options expiring in a week’s time at the $19.00 strike indicating that the surge possibly won’t last. The sold call options could be tied to stock according to Philadelphia floor brokers. Some 10,000 calls have been sold mainly at a 50 cent premium, while at one point the calls reached an intraday high at $1.00 each as Rambus triggered a high at $19.85.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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