Shares of Rambus (RMBS, $17.67, up $1.17) have been volatile lately. The stock is up 7% today, following yesterday’s 9% decline, on no apparent news. Rambus has always been a stock that trades on litigation news and recently won three major decisions that propelled the stock into the $20’s. Just recently it has been hit hard to the downside and when the stock makes these kinds of moves usually there is something brewing.

Option traders are again targeting the November 20 calls (BNQKD, $3.10, up $0.90) as volume is at 17,000 contracts just after lunch. Open interest has been building in these particular options over the past few months and today is no exception.

Rambus is unique in that it has strike prices in dollar intervals. In other words, Rambus has strike prices on both calls and puts at 15,16, 17, and so on. Pretty cool considering most options trade in $2.5 or $5 increments.

Rick Rouse