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Why bulls are making a run at RIMM

One big investor apparently thinks that beaten-down Research In Motion is ready to push higher.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 10,000 February 19 calls for $0.98. Volume is more than 18 times open interest in the strike.

RIMM will release earnings after the bell on Wednesday. Its December calls will lose value quickly unless the stock leaps sharply, so their choice of the February contracts suggests that the trader is looking for a more gradual ascent into the New Year.

Research In Motion's shares are down 3.1 percent to $15.95 in afternoon trading and have lost 47 percent of their value in the last year as many customers have abandoned the company's flagship BlackBerry mobile device. But some traders may think that the stock is ready to turn around as it tries to hold support around the same level where it bounced last month.

The company missed expectations in its last two earnings reports, and management warned earlier in the month that this quarter's results will be weak on weak sales of its PlayBook tablets. (See researchLAB for more)

Calls account for a bullish 58 percent of activity in the name so far today, according to the Heat Seeker.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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