Unusual Options Activity Alert: Anheuser Busch (BUD) & Evergreen Solar (ESLR)
Anheuser Busch (BUD)
BUD rose to four-month highs on increasing call volume Wednesday. Thursdayís options report in the Wall Street Journal attributed that action to takeover rumor, citing InBev as a possible acquirer.
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During the first hour of trading Thursday, shares are up another dime to $52.75 and 10 call options have traded for every put. Trade Alert data shows that directional sentiment based on the total volume is 80 percent bullish.
Shares are up nearly 10 percent during the past month, but the action suggests that some players in the options market expect the run higher to continue.
Evergreen Solar (ESLR)
ESLR is seeing heavy trading Thursday morning. During the first hour of trade, total volume is running six times the usual. The stock is trading up $1.97 to $11.07 a share after the company announced that it had signed two new long-term contracts, one with German-based Ralos Vetriebs GmbH worth $750 million.
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20,000 ESLR calls have traded on the news and 5,800 puts. Some of the action is profit taking, as the June 12.5 calls are the most actives (6,200 contracts) and more than half of that volume is trading on the bid.
Posted By: Trade Alert
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About Frederic Ruffy
Frederic Ruffy is a Freelance Writer and Options Trading Strategist. In addition to writing market commentary and trading-related books and articles, Fred has also worked as an instructor, educating investors on advanced topics like measuring volatility, the benefits of sector rotation and the risks and potential profits from trading around earnings. His market observations are mentioned frequently in the financial press and he currently trades stocks, futures, and options in Salt Lake City, Utah.
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