This morning, Alcatel-Lucent announced that it has formally signed a package of frame agreements with a combined value of up to 750 million euros ($1.1 billion) for mobile communications solutions and services with China Mobile and China Unicom, leading Chinese mobile service providers. French President Nicolas Sarkozy and Chinese President Hu Jintao took part in the formal signing ceremony held in Beijing.

The shares of ALU are trading slightly higher this morning, but are facing potential resistance at their 10-day moving average near the 8 level. The stock has been locked in a steep downtrend since tagging a near-term high of $14.57 at the beginning of July.

Meanwhile, options players are extremely optimistic, as the stock's Schaeffer's put/call open interest ratio rests at 0.18, as call open interest easily outweighs put open interest among options that expire in less than 3 months.