BUZZ-Vodafone: traders write call options as share surges

** Traders busy writing Vodafone calls at 260p asprice of the option leaps on hopes of a deal with Liberty Global

** Shares at 14-yr high of 254p as sell-side continues totalk up merger

** June 260 calls -- easily the most traded strike today --surge in value to 5p (from 0.75p on May 12), a yield of around 2pct. Chart: http://link.reuters.com/fax74w

** Stock goes ex-div by 7.62p on June 11 before optionexpiry on June 19

** If Vodafone fails to recover loss from ex-div and hold260p by June 19, call writer will pocket the premium as well asstock's dividend yield, now 5.1 pct

** Possible alternative for holders of Vodafone shareslooking to sell stock on move higher (RM: alasdair.pal.thomsonreuters.com@reuters.net)