Traders Snapping Up Calls as Eastman Kodak Pops (EK)

Shares of Eastman Kodak Company EK are higher on the session by 5.06%, currently trading at $5.81. The stock has been moving largely higher over the past four months and is currently trading well above the 50-day and 200-day moving averages. Call volume is exploding on the name today, with over 32k contracts traded so far; only 3k puts have traded. While the action is heavy, sentiment is mixed. It appears that the January 2011 $5.00/5.50 call spread was sold 5,000 times for $0.34. Open interest on the strikes is 27,032 and 7,545 contracts, respectively. While this could be a closing transaction (which would be bearish), it may also be a roll up of calls (which would be bullish). The January $6.00 and $7.50 strikes are also seeing buyers, pushing overall implied vol up by 1.5% to 62.5%. Eastman Kodak Company is engaged in the sale of imaging products, technology, solutions and services to consumers, businesses and professionals.