Traders are getting awfully enthusiastic about BlackBerry—but it's important for bulls to bet prudently.
BlackBerry shares are trading much higher on Wednesday, as speculation heats up that Lenovo could make a bid for the company. In July, BlackBerry announced that it was seeking a buyer or strategic partnership, which caused the stock to rally from $9 to over $12 before settling into a range just above $10.
(Read more: BlackBerry may be spinning off messenger service)
On Wednesday, option trading has been unusually heavy in the stock, with the bulk of volume concentrated in weekly call options. After only 30 minutes of trading, more than 20,000 calls had traded versus only 4,600 puts, as traders rushed to make bullish bets on the stock. The most active option Wednesday is the 10.5-strike call expiring on Friday, of which the majority of trading has been initiated by buyers.