Thursday, December 10, 2009

STOCK & OPTIONS ALERT in Energy Conversion (ENER, AMAT)

Energy Conversion Devices, Inc. (NASDAQ: ENER) is surging again, on the same reason it surged before…. buyout rumors, with Applied Materials (NASDAQ: AMAT) listed as the rumored buyer.  Many have pointed out that this would mark a directional-change for Applied as they are generally farther up the supply-side of the chain.  Nonetheless, it is a rumor that has been there before… Caveat Emptor.

At 12:50 AM EST we have shares up 7.6% at $11.40 on 3 million shares of stock.  Average volume is only 2.9 million shares and the 52-week range is $9.76 to $30.45.  Bit the real trading is in the stock options. We compared options contract volume versus the open interest (listed as OI) with the strike on each month.

This is the DEC09 CALL activity alone, which expire next Friday:

  • $10.00..      1,743 contracts vs. 2,920 OI
  • $11.00..   7,909  contracts vs. 6,989 OI
  • $12.00..   4,130  contracts vs. 4,187 OI

JAN10 CALLS as follows:

  • $11.00..   1,753 contracts vs. 1,530 OI
  • $12.50..    3,129 contracts vs. 3,610 OI

MAR10 CALLS as follows:

  • $12.00..   1,126 contracts vs. 3,466 OI

JUN10 CALLS As follows:

  • $10.00..   906 contracts vs. 57 OI


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