Ruckus Wireless, Inc (RKUS) Option Bulls Make a Rare Appearance

Ruckus Wireless Inc (RKUS) calls are trading at 79 times the expected intraday amount

by Karee Venema

Published on Feb 20, 2015 at 2:57 PM
Updated on Apr 20, 2015 at 5:32 PM

Similar to Gogo Inc (NASDAQ:GOGO), Ruckus Wireless Inc (NYSE:RKUS) is enjoying a CNBC-related pop today. Specifically, RKUS is up 5.9% at $11.48 after CNBC's Jon Najarian said he was long the stock -- similar to today's batch of option traders -- ahead of a presentation early next month.

Calls are running at 79 times what's typically seen at this point in the day, and the stock's 30-day at-the-money implied volatility has popped 31.2% to 57.5%. Most active is the equity's August 15 call, with all signs suggesting buy-to-open activity. By initiating these long calls, speculators expect RKUS to topple the $15 mark by August expiration. The options market isn't too confident the call will expire in the money, as delta on the option is docked at 0.30.

Today's accelerated call activity marks a change of pace in RKUS' options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.39 ranks in the 82nd annual percentile. Echoing this is the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.49, which rests higher than 86% of similar readings taken in the past year, meaning short-term speculators are more put-heavy than usual.

On the charts, the stock has been a long-term laggard, shedding roughly 17% over the past 52 weeks. However, the security has been making some strides of late, and since hitting its year-to-date low of $9.11 on Jan. 14, Ruckus Wireless Inc (NYSE:RKUS) has tacked on 26%.


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