Green Stocks Central
There is no impact from this on 2009 results. Shares of Rentech (RTK) are down about 10% in after hours trading.
and more »
Welcome to my new trading blog based of after hours stocks. Please subscribe for updates.
Exxon Mobil Corporation (NYSE: XOM) and XTO Energy Inc. (NYSE: XTO) announced an all-stock merger transaction valued at $41 billion. ExxonMobil has agreed to issue 0.7098 common shares for each common share of XTO. The deal has already been approved by the boards of directors of both companies. The agreement is subject to XTO stockholder approval and is also subject to regulatory approval. XTO shares are up 19% at $49.15 on 1.7 million shares as of 7:52 AM EST. We’d watch spreads contract and tighten on this one over the days and weeks ahead, because it is not known how the current administration will treat a domestic merger of this sort.
JON OGG
This weekend’s review of options and volume movers on Friday yielded a highly unusual alert. The PowerShares DB US Dollar Index Bullish (NYSE: UUP) has never been covered by us on the “volume spike” aspect, mainly because of the notion that ETFs of this aspect is too broad-based to normally be noticed. It would almost be no different than saying trading volume in the SPDR (NYSE: SPY) or the PowerShares QQQ (NASDAQ: QQQQ) were seeing big volume. But Friday may, key on ‘may,’ have marked a significant capitulation move for how traders want to trade the US Dollar.
The “UUP” is one of the most easy and simple ways for investors to bet on the recovery of the US Dollar. We may be entering a new inflation age and we may not, but it would be extremely rare for the US Dollar to decline indefinitely. When global investors see Dubai, Greece, Ireland, and Spain all in trouble, it could end up being the saving grace that causes a reconsideration about moving away from the US Dollar as the world’s reserve currency.. But you don’t even need the backgrounder anymore, as you have probably heard this before. The volume and interest here should speak for itself.
The UUP traded over 15.1 million shares, which is almost 4-times normal volume and what looks to be the record trading volume ever seen since its March-2007 launch. The ETF itself rose 0.8% to $22.68 versus a 52-week trading range of $22.02 to $26.83.
The real kicker is the options trading as Friday had 342,682 contracts trade of the MAR10 $23.00 CALLS versus an open interest of 105,007. That represents a 34 million share bet on a fully leveraged basis. The Dollar-Trade was one of the most crowded on the way down, and it will be one of the most crowded on the way back up if and when that occurs.
Whether this continues, we’ll have to see. Someone is making big bets on the overall return of the US Dollar.
Jon C. Ogg
December 13, 2009
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