Schaeffer's Trading Floor Blog

Options Check-Up: Clean Energy Fuels Corp, Cirrus Logic, Inc., and Nokia Corporation (ADR)

Analyzing recent option activity on CLNE, CRUS, and NOK

by 7/2/2014 4:55 PM
Stocks quoted in this article:

Among the stocks attracting attention from options traders lately are natural gas concern Clean Energy Fuels Corp (NASDAQ:CLNE), integrated circuits specialist Cirrus Logic, Inc. (NASDAQ:CRUS), and Finnish telecom concern Nokia Corporation (ADR) (NYSE:NOK). Below, we'll break down how options buyers are positioning themselves, and how much speculators are willing to pay for their bets on CLNE, CRUS, and NOK.

Although CLNE has tacked on nearly 35% since hitting its April 28 low of $8.59, the shares have recently run headlong into resistance at their 320-day moving average. In fact, this trendline capped today's early advance, with the stock closing 0.5% lower at $11.57. Option traders have taken the glass-half-full approach, though, per the security's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 25.79, which ranks in the 94th percentile of its annual range. However, with short interest accounting for 25% of the stock's available float, some of this activity could be a result of shorts hedging against any more upside. Regardless, now is a prime time to place bets on CLNE at a relative bargain, considering its Schaeffer's Volatility Index (SVI) of 32% ranks lower than 82% of similar readings taken in the past year.

CRUS has put in a respectable performance on the charts in 2014, with the shares up about 12.3% to trade at $22.93. Option traders have turned increasingly bearish ahead of the company's fiscal first-quarter earnings report, though, which is due out the evening of Wednesday, July 23. Specifically, the equity's 10-day ISE/CBOE/PHLX put/call volume ratio has jumped to 1.63 from its June 23 reading of 0.06, and now ranks above 96% of all comparable readings taken over the last 12 months. In other words, puts have been bought to open over calls with more rapidity just 4% of the time within the past year. CRUS' front-month options can be currently had at a relative steal, per the stock's SVI of 33%, which ranks in the bottom 6% of its annual range.

Finally, NOK has failed to make any notable moves on the charts this year, with the stock sitting about 6.2% below breakeven to hover near $7.61. Option traders are hopeful, and over the past 10 sessions, have bought to open almost 73 calls for each put. What's more, the resultant call/put volume ratio of 72.93 ranks 3 percentage points from a bullish peak. Meanwhile, the security's SVI of 39% ranks lower than 94% of other readings taken in the past year, suggesting NOK's short-term options are inexpensive at the moment, from a volatility perspective. On the fundamental front, NOK announced today it is purchasing Illinois-based SAC Wireless for an undisclosed amount. Additionally, the company is slated to report its second-quarter earnings results on Thursday, July 24.

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