Rocket Fuel, Inc. (FUEL) Put Players Stand Pat Despite Pops

Put buying has been popular on Rocket Fuel Inc (NASDAQ:FUEL) in recent weeks

May 12, 2015 at 2:15 PM
facebook twitter linkedin


Put players have been active in Rocket Fuel Inc's (NASDAQ:FUEL) options pits in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.18 rests in the 64th annual percentile.

Mirroring this is FUEL's Schaeffer's put/call open interest ratio (SOIR) of 0.80, which rests just 6 percentage points from a 52-week peak. In other words, near-term traders have rarely been as put-heavy toward the security as they are now.

This skepticism is seen outside of the options pits, as well, where short interest accounts for nearly 18% of the equity's available float. Additionally, six out of seven analysts maintain a lukewarm "hold" recommendation on the shares, while FUEL's average 12-month price target of $10.56 represents a tepid 14% premium to current trading levels. Today, in fact, Citigroup lowered its price target on FUEL to $9.50 from $12.

Technically speaking, the stock has made some big moves to the upside recently. Last Friday, for example, FUEL popped 9% in the wake of an unsolicited $350 million buyout offer from Gravity4 -- a bid BMO called "low-ball." In today's session, the stock is up 8.4% at $9.28, after unveiling a new partnership with Japan-based Cyber Communications Inc.

Longer term, though, Rocket Fuel Inc (NASDAQ:FUEL) remains a technical dud. Year-to-date, specifically, the stock has surrendered 42% -- and has not traded in double-digits since late March.
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners