Option bulls line up for RIM calls before earnings

By Doris Frankel

CHICAGO, April 1 (Reuters) - Many investors on Wednesday appear eager to buy bullish call options in BlackBerry maker Research in Motion Ltd (RIM.TO) (RIMM.O), hoping its quarterly profit will be positive and send its shares above $50.

RIM is set to report fourth-quarter earnings on Thursday. Analysts are expecting the company to earn 84 cents a share before one-time items on revenue of $3.4 billion, according to Reuters Estimates

Its shares rose 5.98 percent to $45.69 on the Nasdaq in late afternoon trade.

The company warned in February its quarterly profit will come in at the low end of its forecasts. Still, it said it expects to add 20 percent more subscribers than the 2.9 million it earlier predicted.

RIM cited a variety of factors in the profit warning, including product mix, lowered channel inventory levels and a higher ratio of new subscriber sales to upgrades and replacement sales.

In the options market, some traders turned optimistic on the company's prospects and flocked to RIM's near-term call options, conveying the right to buy the company's shares at a fixed price within a specified time period.

"Option traders are now betting that the response to the actual earnings will be bullish and expect its shares to rise," said Chris McKhann, analyst at Web information site optionMonster.com.

RIM shares on Feb. 11 opened at $50.16 on the Nasdaq, creating a gap on the chart that traders expect to fill, McKhann said. On that day, the shares dropped significantly and closed at $48.76 as investors digested the company's warning.