[Homo Erectus]

Several large consumer-technology stocks have bounced recently after long sell-offs, and one trader is betting that Sony is joining the crowd.

OptionMonster's tracking programs detected the purchase of more than 5,000 January 11 calls for $0.15 yesterday. Most of the activity took place in about five minutes, suggesting that it was the work of a single investor.

The calls lock in the price where shares can be bought in the once-mighty Japanese electronics firm. These options were particularly inexpensive and have the ability to provide huge leverage in the event of a rally, but they will expire worthless if the stock doesn't move by mid-January.



Sony shares rose 3.44 percent to $10.23 yesterday. The stock has been trending lower for the last five years and has lost more than half its value since mid-March. That sell-off has brought the stock back to its lowest levels since 1987, and yesterday's call buyer apparently thinks that it's ready to rebound.

Other big tech stocks recently have made similar moves. Hewlett-Packard and Dell have handed traders gains of 300 percent in recent weeks, while Research In Motion has generated even bigger profits. All three of those stocks had fallen to long-term lows before they pushed higher.

Sony also trades for about half of book value and has little net debt, which could make some investors think that it's now a safe bet.

Total option volume in Sony was more than triple its daily average, with calls outnumbering puts by a bullish 24 to 1

Will Sony Become the Next RIM?

[badiyee]

Sony is doing decent, but they certainly lost their mojo after the loss of "Mr. Sony".

If any indicators are to be pointed, their next-gen gaming console needs to be seriously worked on.

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[lactose]

I will not forgive them for sneaking a root kit on to customers' PCs.

[Ray UM]

I will not forgive them for sneaking a root kit on to customers' PCs.

THIS...x2.2 million and 2


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[col_oddball]

Sony are the DRM Masters of the Universe, I hope they go down in flames...

[ljfong]

Sony equipments are usually full of proprietary parts that are overpriced and cannot be easily replaced because they used non-standard interfaces and like many said, it's all about DRM, DRM, DRM when it comes to Sony because all their customers are presumed to be thieves.