AES is reportedly exploring sale options
Utility stock AES Corp (NYSE:AES) is surging today, up 16% at $12.84 at last glance, after reports that the company is exploring sale options amid takeover interest. The power sector has been drawing acquisition attention lately due to artificial intelligence (AI) and cryptocurrency mining.
Headed for its biggest single-day percentage gain since May 8, 2009, AES earlier hit its highest levels since March of this year before paring gains. There are several layers of potential resistance the stock is grappling with today: the year-to-date breakeven level, the 200-day moving average, and the $12.60 level -- the latter of which rejected the shares in April and May.
Call traders are blasting AES after the news. So far, 36,000 calls have been exchanged -- 7 times the call volume typically seen at this point -- in comparison to 2,616 puts. The weekly 7/11 11.50-strike call is the most popular, followed by the 11-strike call in the same series.
Calls have been popular over the last 10 weeks, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AES' 50-day call/put volume ratio of 11.37 ranks higher than 80% of readings from the past year.
AES tends to outperform options traders' volatility expectations, too. This is per its Schaeffer's Volatility Scorecard (SVS) reading of 96 out of 100.