Kandi Technologies Group, Inc. (KNDI) Bulls Active After SEC Decision

The SEC will take no legal action toward Kandi Technologies Group Inc (KNDI)

Feb 17, 2015 at 2:09 PM
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Kandi Technologies Group Inc (NASDAQ:KNDI) is soaring today -- up 13.6% at $13.98 -- after the company said it received a clean bill of health from the Securities and Exchange Commission (SEC). In the equity's options pits, calls are crossing the tape at three times what's typically seen at this point in the day, and per KNDI's 30-day at-the-money implied volatility, which has surged 16.8% to 79.9%, short-term contracts are in high demand.

Drilling down, buy-to-open activity has been detected at the stock's February 10 call, as traders gamble on a bigger jump through week's end -- when front-month options expire. The options market seems fairly confident the call will be in the money at Friday's close, as delta was last seen docked at 0.96.

Widening the sentiment scope reveals put buying has been popular on KNDI -- as well as sector peer Tesla Motors Inc (NASDAQ:TSLA) -- in recent months. Specifically, the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.69 ranks in the 89th annual percentile.

Even more telling of this put-skewed bias is KNDI's Schaeffer's put/call open interest ratio (SOIR) of 0.81, which ranks higher than all other comparable readings taken in the past year. In other words, short-term speculators are more put-heavy now toward Kandi Technologies Group (NASDAQ:KNDI) than at any other point during the past 12 months.

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