Calls Purchased on Reynolds American (RAI)

Shares of Reynolds American RAI are lower on the session by 0.71%, currently trading at $31.99. The stock had been moving largely lower over the past six months, though it recently came under selling pressure and is trading below the 50-day moving average. Options traders are buying calls on the name today. A short while ago the May 2011 $32.50 call was purchased 2,100 times, on the offer, on open interest of 4,195 contracts. Overall call volume is now running at 2.95x the daily average with 91% of all calls traded being purchases on the offer. Reynolds American Inc. is a holding company. The company's wholly owned subsidiaries include R. J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc., Lane, Limited, Conwood Holdings Inc., and American Snuff Company, LLC and Rosswil LLC, collectively referred to as the Conwood companies.