Irrespective of the fact that the shares of Vringo,
Inc.(AMEX:VRNG) have soared 275% so far this year, option traders are making
bullish bet on the stock majority of the buying are witnessing for the November
expiry.
The company had sued Google earlier this year calming
that the later has infringed its patents related to sorting ads based on
click-throughs. Both the companies are scheduled to present their views on October
16.
Considering the above scheduled event, option
traders are bullish on VRNG and made several call buying for Nov 17. The most
active contract was $5 strike price which traded 690 contracts and open interested
stood at 18694. Also, 594 contracts were traded for strike price of $4
with open interest of 4249.
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Interestingly, few highly bullish traders bought a
total of 322 contracts and 330 contracts for Nov $9 calls with premium price of
$0.55 and $0.45.
Usually out of the money call buying is a very
bullish bet and considering the latest activities, seems like traders are
expecting VRNG to win the case against the search engine giant and earn maximum
profit from their bet. However, if the VRNg losses the case, those option
traders have limited their loss to the premium paid.
Shares of VRNG was down 0.80% to $3.72 on Wednesday after surging
over 9% in Tuesday’s session. The stock was trading less than a dollar in
January.
Earlier this month, AOL settled with Vringo's I/P
Engine in the same court. I/P Engine is a company that merged with Vringo
earlier this year.
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