This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bullish Trends: Rolling, Rolling, Rolling

TheStreet Premium Services

A complimentary preview
of Options-Profits Previews

Finally, Research In Motion (RIMM) is around $8.40 and interesting trading activity surfaced on the Blackberry-maker yesterday when a November - December 7 call spread traded for $0.34, 18300X, and again for $0.24, 14500X (roughly). 40,164 November 7 calls traded on the stock yesterday and the activity probably offset positions opened before the October expiration, when blocks traded for prices ranging from $1.15 to $1.20. The stock is up almost 5% since that time and the position is being closed at $1.43. They are closing the position rather than exercising the in-the-money contract and buying (calling) a hefty amount of RIMM shares at expiration. New positions now being opened in December 7 calls for $1.67., which traded 35,228 contracts on the day. With 43,326 contracts in open interest, the December 7 call is now the largest open interest position in RIM options.

If you track order flow to find trading ideas, the rolling of large blocks of options is interesting. In two of the three examples (MRO and RIMM), the investor is banking a profit on the November contracts. The FXI November call position was a winner until the volatile sell-off across global equity markets seen last week. Moreover, by opening positions in December, these big traders seem to be expressing confidence that the bullish trends in the underlying shares will continue over the next five and a half weeks.

OptionsProfits can be followed on Twitter at

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

At the time of publication, Henry Schwartz held no positions in the stocks or issues mentioned.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Top Rated Stocks Top Rated Funds Top Rated ETFs