Goldman Deal Fails to Stop Sunedison Inc's (SUNE) Bleeding

Sunedison Inc (SUNE) is struggling, despite its recently announced tie-up with Goldman Sachs Group Inc (GS)

Aug 18, 2015 at 1:55 PM
facebook twitter linkedin

During the last 24 hours, Sunedison Inc (NYSE:SUNE) has been all over the news. Last night, the solar company announced it will form a $1 billion clean-power investment vehicle with Goldman Sachs Group Inc (NYSE:GS). This morning, as well, SUNE said it is upping the size of its preferred stock offering to 650,000 shares from 500,000.

Suffice it to say, the headlines are failing to help the security on the charts. At last check, SUNE was down 3.3% at $14.20, after earlier running into its 10-day moving average. In fact, so far this year, the shares have plunged more than 27% -- and recently strung together a dismal five-day stretch.

On the Street, sentiment is mixed. On the one hand, analysts are pretty upbeat, with five of seven doling out "buy" or better endorsements -- with not a single "sell" to be found. On the other, over one-quarter of SUNE's float is sold short, representing almost a week's worth of trading, at typical volumes.

Meanwhile, bearish betting has been trending higher at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in recent months. Sunedison Inc's (NYSE:SUNE) 50-day put/call volume ratio of 0.67 is lingering near levels not seen since February, and registers in the top one-third of all comparable readings from the past year.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners