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Credit Suisse Group (NYSE: CS) is trading 9X average call volume with action all through the day at the November $60 calls, with a few 500+ blocks bought. This is a high dollar volume action with the calls trading north of $2.50 much of the day. Credit Suisse may be the next financial to post blowout numbers and it is extremely cheap on valuation. Earnings are tomorrow before the open and it’s recent overhaul of compensation packages may be cheered by investors. The recent resurgence of IPOs, stock offerings and M&A should boost its large investment banking business. It is also in a position of financial strength to return cash to holders and/or make deals. Record low interest rates also likely resulted in great profits in its debt and commodities trading units.
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Barrick Gold Corporation (NYSE: ABX) is trading just under $39.00, yet there is a very bullish bet that was made. The Jan-2011 $55.00 CALLS saw some 20,001 contracts trade today versus a prior open interest of 10,964 contracts. There was no other side taken in the PUTS and this was larger than the entire open interest. Someone is betting for or against $1,200.00 to $1,400.00 gold, or so it would seem…. UPDATE at 2:51 PM EST: after further review, there were also 20,705 of the APRIL-2010 $30 CALLS that traded today, and the prior open interest was 20,771 contracts. -JON OGG
Polycom Inc. (NASDAQ: PLCM) is trading sharply lower this morning. The communications provider reported that third-quarter earnings fell by about 24% on lower sales. The company pointed toward sequential revenue growth and a rise in orders. After more than doubling that was not good enough. Shares were down 5.2% at $25.00 on only 35,000 shares in teh after-hours session after earnings. At 8:54 AM EST we have shares trading down almost 13% at $22.95 on 140,000 shares. The 52-week trading range is $12.19 to $28.43. -JON C. OGG