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RadioShack Corporation's (RSH) January 2016 0.50-strike call was heavily targeted yesterday
RadioShack Corporation (NYSE:RSH) jumped more than 20% yesterday, after Salus Capital Partners offered the struggling electronics retailer a $500 million lifeline. Options traders responded, as volume quadrupled the single-session norm.
RSH's most active option by a mile was the January 2016 0.50-strike call, where north of 23,700 contracts changed hands. Several signs suggest buy-to-open activity transpired, as the traders banked on additional upside over the next year. While the shares explored the north side of $0.50 in intraday trading Tuesday, they haven't settled above that mark since early December.
Yesterday's RSH call buyers have plenty of company. During the last 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a call/put volume ratio of 2.28 -- higher than two-thirds of all readings from the last year.
While RadioShack Corporation (NYSE:RSH) showed some signs of life yesterday, the shares have struggled over the long term. Since hitting its most recent high of $1.77 in late August, the stock has lost approximately three-quarters of its value. Today, in fact, RSH has dropped 6.5% to trade at $0.44, and has found itself on the short-sale restricted (SSR) list.