The bulls targeted Vodafone for the second session in a row yesterday.
OptionMonster's tracking programs detected unusual activity in the July 28 calls. More than 12,000 contracts traded against previous open interest of 1,746, indication new positioning, with most of the volume pricing for $0.50.
These calls lock in the price where the shares can be bought. They can generate some nice leverage from a modest gain in the stock, but also can expire worthless if it doesn't move.
Vodafone shares fell 1.24 percent to close at $26.21 yesterday, but climbed late in the session after the calls hit. In the previous day, traders snapped up the February 27 calls, looking for a shorter-term pop.
Shares rose in London yesterday after Verizon Communications CEO Lowell McAdam told The Wall Street Journal that he might be interested in buying Vodafone's 45 percent stake in Verizon Wireless.
Total option volume was 10 times greater than average in the British company, with calls outnumbering puts by a bullish 5-to-1 ratio.
—By CNBC Contributor David Russell
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in VOD.