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The US House of Representatives has passed the in a vote of passed 223 ‘for’ to 202 ‘against’ the passage. What is interesting is that we are seeing a sharp run today in some of the key players, but the ‘volume spikes’ are actually more ‘price spikes’ because the volume is low:
Fannie Mae (NYSE: FNM) is up almost 12% at $1.03 on 35 million shares.
Freddie Mac (NYSE: FRE) is up 10.7% at $1.24 on 22.1 million shares.
Ambac Financial Group, Inc. (NYSE: ABK) is up 8.8% at $0.86 on 8 million shares.
The bill will create a Consumer Financial Protection Agency which aims to protect consumers with more regulated credit cards and mortgages. More regulation for systematic risk and derivatives is on the way as well per the passage. The members also voted against an amendment by 241-188 that would have given bankruptcy judges new powers to lower balances on mortgages that would have prevented delinquent homeowners from losing their houses.
JON C. OGG
DECEMBER 11, 2009 (2:53 PM EST)
IMAX Corp (IMAX) is trading 5,191 calls off the bell, 6X average volume in 10 minutes of trade, as shares gain 5% and IV soars 17%. Most of the action is offer side buying in January $12.50 and March $15 calls. Shares are breaking out on volume to 5 year highs, and expect a strong holiday movie going demand. James Cameron’s Avatar is set to be released in IMAX on December 18th. The stock is also on the move as at 9:53 AM EST there have been 382,000 shares traded versus an average daily volume of 520,000 shares. The stock is up 5.35% at $12.39, and the stock actually just put in a new 52-week high today at $12.49. The 52-week low” $2.67. IMAX has been a takeover stock in the perpetual rumor mill before, but today’s action looks more event-driven than speculation or rumor-driven trading.
JOE KUNKLE, OptionsHawk.com
Sunesis Pharmaceuticals Inc. (NASDAQ: SNSS) is at it again. The company more than doubled yesterday to $1.39 on over 35 million based upon Tuesday’s leukemia Phase II drug news presented this week. Traders and investors are speculating that this could be the next small-cap low priced stock that could be a ten-bagger in biotech. Shares are up 7% at $1.49 on 840,000 shares as of 8:26 AM EST. The year high was put in yesterday at $1.84 and even after the price doubled its market cap at yesterday’s close was a mere $47.8 million.
Jon C. Ogg