Ruckus Wireless, Inc. (RKUS) is a California based Wi-Fi hardware, software solution and service provider catering primarily to business enterprise customers. At the time of this post (12:20PM CST), RKUS is currently trading at 11.69, up 7.84% on the day. The stock is currently within the lower-middle portion of its 52 week trading range of 8.65-15.5, and continues its rebound off of the 9.00 support level which began in mid-January.
Earlier this morning, OptionHacker detected and flagged some unusually bullish options activity in RKUS just moments before the stock broke upward on increased volume, through the 11.00 resistance level on the intraday chart. At approximately 9:42AM CST, a trader came in and bought a large block of 1,842 RKUS Aug ’15 50.0 strike calls at the ask of 0.50. This trader lifted the offer across multiple exchanges, and when compared to the minuscule open interest of just 28 contracts in this strike, we can surmise confidently that this was an opening long transaction looking to profit from continued upside in RKUS. With an initial cash outlay of about $92,100 before commission costs, this trader was rewarded almost immediately for their timely purchase, as these options have already traded as high as 0.70 on the day, just hours after OptionHacker caught this early trade. With considerable time remaining before the August monthly options expiration (182 trading days), we will continue to monitor this bullish position in RKUS for continued upside, both on the day and into the near future.
Trade: A trader bought 1,842 RKUS Aug 15 Calls for $0.50
Risk: $50 per 1 lot
Reward: Unlimited
Breakeven: $15.50
These calls have already traded a high as $0.70 making this a very profitable trade.
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