Schaeffer's Option Blog: Smartphone News Sparks Call Activity on Verizon Communications (VZ) and Motorola, Inc. (MOT)

Business Wire, June 23, 2009

CINCINNATI -- Bullish bettors bombarded both Motorola, Inc. (NYSE: MOT) and Verizon Communications Inc. (NYSE: VZ) on Monday, following reports that two large wireless carriers plan to launch Motorola smartphones before the end of 2009. Both phones will be based on Google's (NASDAQ: GOOG) Android operating system, the Wall Street Journal reported.

According to data from WhatsTrading.com, MOT saw nearly 16,500 calls change hands yesterday, nearly quintupling its average daily volume of roughly 3,300 contracts. Most active was the stock's July 7 call, which saw single-session volume of about 13,000 contracts. The slightly out-of-the-money 7 strike is now home to peak call open interest in the front-month series, with almost 20,000 contracts in residence. Nevertheless, investors are now turning to the at-the-money July 6 call, which has seen nearly 2,000 contracts cross the tape so far today.

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