The company has traded over 5,418 options today on total daily average option volume of 223. The Company Tab snapshot is included in the article. Essentially the entire volume was a 2,500 May 5/7.5 call stupid purchase for 1.50 + 0.25 = 1.75. The day's biggest trades and Option Tab snapshots are included in the article. Note the open interest (OI) is much lower than the trade volume for both lines - these are opening trades. Finally the Charts Tab (included in the article) illustrates the strong downward move over the lasy few months including a gap down after earnings. You can also see how large this option volume is relative to the average. You can see details, trades, prices, charts on the blog here: http://livevol.blogspot.com/2010/01/hot-topic-hott-call-buyer.html
Did I get that right -- someone bought both $5 and $7.50 calls, not 5/7.5 call spreads? It's like he could make up his mind - ITM or OTM calls?
Yep. 5 and 7.5 call purchases. It's called a "stupid" if the calls or puts are both bought or sold (i.e not spread).