New High Lures SunEdison, Inc. (SUNE) Option Bulls

Sunedison Inc (SUNE) hit a six-year high earlier

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Published on Apr 2, 2015 at 10:38 AM
Updated on Apr 20, 2015 at 5:32 PM

Sunedison Inc (NYSE:SUNE) shot to a six-year high of $25.57 out of the gate, and was last seen 1.4% above the flatline at $25.45 -- bringing the stock's year-to-date advance north of 30%. This strong price action has option bulls rushing in, with calls running at three times the expected intraday pace.

Digging deeper, buy-to-open activity has been detected at the weekly 4/10 26.50-strike and April 29 calls. By purchasing the out-of-the-money calls, traders expect SUNE to topple $26.50 and $29 by the respective expiration dates -- and notch even higher highs.

As alluded to, SUNE has been a technical beast in 2015. In fact, during the past three months, the shares have outperformed the broader S&P 500 Index (SPX) by almost 39 percentage points.

That hasn't stopped short sellers from wagering on a pullback, though. One-third of SUNE's float is sold short, which would take over nine sessions to cover, at typical daily trading levels. In other words, if the equity sustains its momentum, it could get an additional lift from short-covering activity.

Elsewhere, the brokerage bunch remains bullish toward Sunedison Inc (NYSE:SUNE). Eight of 10 covering analysts have assigned the shares a "buy" or better rating, versus two "holds" and not a single "sell."


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