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Option Brief: Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) rallied nearly 22% last week amid a number of upbeat sector-wide fundamental developments, including its own announcement of a solar panel project in Malaysia. The run higher had Friday's option bulls betting on more upside for YGE over the next several weeks, with a number of speculators targeting the stock's July 4 call.
Specifically, 4,642 contracts changed hands here on Friday -- mostly at the ask price, pointing to buyer-driven activity. Open interest rose the most of any strike over the weekend, making it safe to assume new positions were initiated. Based on Yingli Green Energy Hold. Co. Ltd.'s (ADR) (NYSE:YGE) $4.01 close on Friday, these calls are right at the money. However, in order for the call buyers to profit, the stock must be above breakeven at $4.26 (strike plus the volume-weighted average price of $0.26) at the close on Friday, July 18, when front-month options expire. YGE has not seen the north side of this mark since April 24.