Schaeffer's Trading Floor Blog

Biggest Movers: Level 3 Communications, Inc., bluebird bio Inc, and SunEdison Inc

LVLT, BLUE, and SUNE are moving sharply in Monday's trading

by 6/16/2014 2:22 PM
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Heading into the final hour or so of the session, three of the top market movers are network communications provider Level 3 Communications, Inc. (NYSE:LVLT), biotech concern bluebird bio Inc (NASDAQ:BLUE), and silicon wafer specialist SunEdison Inc (NYSE:SUNE). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • LVLT is down 5.9% this afternoon to trade at $41.52, as Wall Street takes a glass-half-empty approach to the company's stock-and-cash acquisition of Ethernet issue TW Telecom Inc (NASDAQ:TWTC). Ahead of today's drop, Level 3 Communications, Inc. was enjoying a respectable 32.9% lead on the year, so not surprisingly long calls have been favored over long puts in the stock's options pits. Specifically, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 8.16 ranks in the bullishly skewed 82nd percentile of its annual range.

  • BLUE has surged almost 35% today, following successful clinical trial results of its gene therapy treatment LentiGlobin. In fact, the stock hit the $41.75 mark earlier -- its loftiest perch on record -- before pulling back to its current price of $35.16. In the stock's options pits, speculators at the ISE, CBOE, and PHLX have bought to open 124 calls for each put over the past 10 sessions. However, with 8.5% of bluebird bio Inc's float sold short, a portion of this activity may have been the result of short sellers hedging against well-received results for the company's drug trial.

  • SUNE is also in the green today, after Deutsche Bank earlier raised its price target on the stock to $35, and reiterated its "buy" rating. At last check, the stock up 11.2% to trade at $21.55, bringing its year-to-date advance to a lofty 65%. In spite of this impressive price action, short interest surged 16.7% during the last two reporting periods, and now accounts for more than 29% of the stock's available float. What's more, it would take nearly seven sessions to cover these shorted shares, at SUNE's average pace of trading, leaving the door wide open for a short-covering rally, should SunEdison Inc continue to make its way up the charts.

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