Clean Energy Fuels Corp. (CLNE) Drop Has Option Bears Cashing In

Clean Energy Fuels Corp (NASDAQ:CLNE) is tumbling in the wake of its first-quarter results

by Karee Venema

Published on May 12, 2015 at 10:58 AM

Clean Energy Fuels Corp (NASDAQ:CLNE) is down 2.1% at $8.65, after unveiling earnings -- less than what the options market had anticipated. The news is likely music to the ears of put buyers, who were upping the ante ahead of last night's big announcement.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CLNE's 10-day put/call volume ratio has jumped to 3.50 from 0.16 over the past two weeks. What's more, the current ratio ranks in the 95th percentile of its annual range.

Echoing this is the equity's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 2.14. Simply stated, near-the-money put open interest outstrips call open interest by a more than 2-to-1 ratio among front-month options, which expire at this Friday's close.

As of last night's close, peak put open interest in the May series was found at the May 9 strike, and thanks to today's post-earnings plunge, these puts are now in the money. In fact, the May 9 put is the most active CLNE option today, and it appears a number of speculators are selling to close their positions ahead of expiration.

Technically speaking, CLNE has been a strong performer on the charts in 2015, tacking on 70%. Today's slide comes courtesy of a wider-than-expected first-quarter loss, with the company citing project delays and the recent drop in commodity prices. Citigroup is keeping the faith, though, and upped its price target for Clean Energy Fuels Corp (NASDAQ:CLNE) to $8.85 from $5.05, expressing optimism over the future of natural gas vehicles.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Top Lithium Play of 2020
Click to continue to advertiser's site.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
The Top Lithium Play of 2020
Click to continue to advertiser's site.