Call players have converged on Cell Therapeutics, Inc. (CTIC) and Starbucks Corporation (SBUX), with intraday volume rising well beyond the expected level for both stocks. But while CTIC's option activity seems to be bullish in nature, it looks as SBUX has been targeted by skeptical call writers.
Call volume has cranked up to 31 times the norm today on CTIC, with 5,031 contracts changing hands so far. Most active is the equity's January 2012 1-strike call, where 3,980 contracts have crossed the tape -- 75% at the ask price, suggesting they were most likely purchased. CTIC's December 1 call is also in play, with 1,000 contracts exchanged so far -- 100% at the ask price.
With CTIC trading near $0.41 at last look, these 1-strike calls are out of the money by a healthy margin. Speculators seem to be responding to a report that CTIC is in talks with two European funds that could provide the drug company with some much-needed capital. The stock is up 6.6% as a result, breaking free of congestion in the $0.39 area.