The Associated Press
Oclaro shares jumped 22 cents, or 21.6 percent, to $1.24 in after-hours trading, after falling 4 cents, or 3.8 percent, to finish regular trading at $1.02.
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Airliners are seeing massive call option action today with Continental (NYSE: CAL) trading more than 7,700 October $18 calls with shares at $16.80; Delta (NYSE: DAL) trading more than 13,200 October $10 calls with shares at $9.35; and US Air (NYSE: LCC) trading more than 10,600 October $6 calls with shares at $5.18. Furthermore, JetBlue (NASDAQ: JBLU) October $7 calls are trading 10,900 October $7 calls with shares at $6.50. The trades have seen some very large blocks hit, and it may be a “shotgun approach” looking for consolidation in the airline industry, or just a bullish view as oil breaks below $70 a barrel and the airline companies seem to have seen the worst. Most of the airline stocks are at 52 week highs after jet fuel recently hit long time lows, which will improve margins plus the added benefit of a rebounding economy generating more air traffic and better fill rates on planes.
Joe Kunkle, OptionsHawk.com
11:00 AM EST
Amgen, Inc. (NASDAQ: AMGN) is seeing some positive action this morning. The biotech and drug maker announced Phase 3 trial results evaluating denosumab versus Zometa in advanced cancer patients with solid tumors or multiple myeloma showing that denosumab delayed skeletal related events (osteoporosis etc.). Shares are up over 2% at $62.20 on over 175,000 shares as of 8:52 AM EST. As this is already the leader here, the fallout may be limited in competitors. If you can believe it, Amgen is now within about 3% of its 52-week highs. -JON OGG
FormFactor Inc. (NASDAQ: FORM) is not a highly active stock by almost any measure for almost any stock exchange. It is also not an active stock in the realm of options trading. In our weekend review, this one stood out handily for a stock that has rarely, if ever, crossed our path for big weekend stock and options trading screens.    Yet we saw over 11,000 contracts trade hands on Friday, and it was sneaky because the trades were one-sided and all the way out to APRIL-2010 in the CALL options. Here are the trades in the APRIL-2010 CALLS:
CALL$Â Â Â Volume Op.Int.
20.00Â Â Â 6,880Â Â Â 25
22.50Â Â Â Â 125Â Â Â Â Â Â 25
25.00Â Â Â 5,592Â Â Â 96
What is odd is that those two trades were bigger than the open interest of all the seen CALL options from now until then combined. That even includes the SEPT-2009 options which expired.  This stock closed down 0.45% at $24.34 on 684,832 shares. That is barely above average of about 585,000 shares. Its market cap is $1.2 billion and the 52-week trading range is $11.36 to $26.08.
JON C. OGG
Mueller Water Products, Inc. (NYSE: MWA) priced a 32.28 million share secondary offering of common stock at $4.75 through BofA Merrill Lynch and Goldman Sachs. This offering size was increased on demand as the original amount was to be 27.5 million shares. The $144.1 million in gross proceeds is to be used to purchase additional shares and to repay a portion of indebtedness outstanding under its credit agreement. Co-managers a At 8:47 AM EST we have seen 370,000 shares trade and the stock is actually up 2% at $4.95. Expect the volume here to blow though the 1.1 million share average as the opening gets closer. -JON OGG