Bearish Action In Research In Motion Weeklies As Shares Extend Slide

Research in Motion, Ltd. (RIMM)– Thestruggling mobile phone maker's shares are in the single-digits today,down 5.75% this afternoon to $9.67, trading at their lowest level innearly a decade. Put buying and call selling in the weekly optionssuggests there is further pain ahead for RIMM shareholders. Traderspositioning to profit from further weakness in the price of theunderlying snapped up more than 1,250 in-the-money puts at the Jun. '082012 $10 strike for an average premium of $0.23 each in the first halfof the session. Put buyers may profit at expiration later this weekshould shares in Research in Motion settle below the breakeven price of$9.77.

Meanwhile, traders selling upside calls walk away with profits aslong as shares in the Blackberry maker fail to rally by expiration thisweek. More than 6,200 calls changed hands at the $10 strike againstopen interest of 648 positions, and it looks like most of the calls weresold for an average premium of $0.06 each. Upwards of 2,100 calls weresold at the Jun. $10 strike today at an average premium of $0.28 percontract. Research in Motion in scheduled to report first-quarterearnings after the closing bell on June 28th. The Company last weekforecasted an operating loss for the first quarter and said it had hiredbanks to look into strategic options.

HollyFrontier Corp. (HFC)  – TheDallas, Texas-based producer of gasoline and jet fuel popped up on ourmost active by options volume market scanner this morning following aflurry of activity in the July expiry calls and puts. Shares inHollyFrontier rallied at the start of the session after the stock wasraised to ‘Buy' from ‘Neutral' at UBS, but those gains were short-lived,with the stock now down 3.3% to stand at $28.70 as of 1:25 p.m. in NewYork. The largest trade in HFC options today appears to be a bet thatshares in HollyFrontier will settle in a narrow range by Julyexpiration. It looks like one strategist initiated a short strangle,selling 7,665 puts at the July $29.5 strike and selling the same numberof calls at the July $30.5 strike, all for a net credit of $3.60 percontract. The trader keeps the full amount of premium should shares inHFC settle within the $29.50 to $30.50 range implied by the strikes,with losses possible in the event that shares in the name exceed theupper breakeven price of $34.10 or slump below the $25.90 breakevenprice on the downside.

Hansen Medical, Inc. (HNSN) – Sharesin the medical equipment maker are bucking the trend today, trading11.3% higher on the session at $2.57 as of 12:30 p.m. ET. Optionstraders appear to be picking up in-the-money calls in the front month,perhaps to position for shares in Hansen Medical, Inc. to extend gainsin the near term. More than 1,100 calls have changed hands at the Jun.$2.5 strike, with most of the volume purchased for an average premium of$0.28 apiece. Call buyers may profit at expiration later this month inthe event that Hansen's shares rally another 8.2% to surpass the averagebreakeven price at $2.78. Providing quality reviews, articles and writings on crude oil, energy and gas online.