SunPower Corporation (SPWR) Option Bulls Active

Options traders remain optimistic on SunPower Corporation (SPWR)

Digital Content Group
Jan 13, 2015 at 11:51 AM
facebook X logo linkedin

An upgrade to "outperform" from "neutral" at Credit Suisse has SunPower Corporation (NASDAQ:SPWR) 7% higher today at $27.30. As such, calls are crossing at two times what's typically seen at this point in the day, and the stock's 30-day at-the-money implied volatility has popped 7.1%, pointing to escalating demand for near-term contracts. In fact, all 10 of SPWR's most active strikes are calls, with the January 2015 25 and 26.50 strikes leading the way.

Digging deeper, it appears most of the contracts crossing at these strikes are being bought to open, implying that the traders expect the stock to extend today's rally and continue to trade above the respective strikes through this Friday's close, when the contracts expire.

Optimism exists outside of SPWR's options pits, as well, despite the security's long-term technical struggles. Of the 10 analysts covering the stock, seven rate it a "buy" or better. Moreover, its average 12-month price target of $38.73 represents a 41.9% premium to current trading levels.

Despite today's pop, SunPower Corporation (NASDAQ:SPWR) has dropped roughly 10% year-over-year, and has underperformed the broader S&P 500 Index (SPX) by nearly 19 percentage points in the past three months. In fact, the equity has spent the past six months embarking on a series of lower highs and lows, and has given up more than 35% since touching a five-year high of $42.07 in late June.

Daily Chart of SPWR since August

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI