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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
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:
JAN10 CALLS as follows:
MAR10 CALLS as follows:
JUN10 CALLS As follows:
JON C. OGG
Sunesis Pharmaceuticals Inc. (NASDAQ: SNSS) is seeing an explosion in trading volume today. What needs to be remembered here is that this is a micro-cap penny stock….. The $0.795 price at 11:30 AM EST is after a 32.5% gain in the share price, and its market cap is $27.3 million. Trading volume is over 4 million shares and average volume is about 600,000 shares. Today’s gain is after a large gain on Tuesday based upon positive Phase II study data in its leukemia trials. On Tuesday it traded north of 10 million shares. This stock has no options and its 52-week trading range is $0.05 to $0.90. At the end of September, it held $3.87 million in cash. Traders chase low priced biotech stocks in hope of finding the next ten-bagger.
JON C. OGG
Gartner Inc. (NYSE: IT) is not your usual pre-market mover. At 8:29 AM EST we have shares trading down 6.7% at $17.10 after a $18.34 close Wednesday. The company has a secondary offering coming of 8 million shares being sold by Silver Lake. None of the proceeds from the sale by Silver Lake will go to Gartner. We have yet to see a pricing in SEC filings but that will price either this morning or tonight. The 52-week range is $8.33 to $20.27 and the average daily volume is only 330,000 shares.
JON OGG