Rambus (RMBS) is going to report earnings on October 15th. It appears that some people already know Rambus is going to report good earnings. May be some serious speculation is going on. Rambus is up $1.07 (6%) today. There is a lot of action going on in Rambus’s call options. As I write this, more than 9,454 call option transactions for October 18 call took place today. Someone is expecting huge move after Rambus reports earnings next week. October calls expire on October 16, one day after Rambus reports earnings.

Rambus’s options volume is running six times the usual volume and call volume accounts for 88 percent of today’s volume.

Options activity in XTO Energy (XTO) also rose to two times the usual volume, with 34,000 traded and put volume representing about 69 percent of the activity. XTO Energy reports earnings on November 4th. KB Homes (KBH) also experience similar options activity that is running two times the usual volume. 19,000 contracts traded and put volume accounting for about 86 percent of the activity.

Disclaimer: I do not own stocks or options mentioned in this article.