Probe Results Lift Amira Nature Foods Ltd (ANFI), Reward Bulls

What a day it's been for Amira Nature Foods Ltd (NYSE:ANFI). The shares are rocketing up the charts after the Indian rice specialist was cleared of fraud allegations during an independent probe. At last check, the stock is up over 47% at $7.56, and flirting with its 120-day trendline for the first time since early August. Amid the surge, ANFI options volume has surged to 16 times the expected intraday rate.

In the past few months, traders have been betting bullishly on ANFI across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the stock's 50-day call/put volume ratio of 15.65 ranks just 3 percentage points from a 12-month peak. In other words, option players have rarely preferred bullish bets over bearish by a greater margin over the last year -- and, thus, may be welcoming today's rally with open arms.

However, 19% of Amira Nature Foods Ltd's (NYSE:ANFI) float is sold short, representing over three weeks' worth of trading demand, at typical volumes. This -- combined with the fact the shares were down 64% year-to-date heading into today's session -- suggests some of the aforementioned call buyers were short sellers hedging against an unforeseen breakout (like today's).