Bulls Rush IMAX Corporation (IMAX) Amid Overseas IPO

IMAX Corporation (USA) (IMAX) soared to an 18-year high earlier

by Alex Eppstein

Published on May 28, 2015 at 11:19 AM
Updated on Jun 24, 2020 at 10:16 AM

IMAX Corporation (USA) (NYSE:IMAX) surged to an 18-year high of $42.44, after the entertainment company's Chinese unit filed for an IPO. At last check, the stock remained 5.1% higher at $40.75 -- bringing its year-to-date lead close to 32%. Not surprisingly, option bulls have taken notice.

IMAX calls are currently trading at four times what's expected at this point in the session. By the numbers, nearly 3,000 calls are on the tape, compared to roughly 130 puts. The June 33 call is seeing the most action, and it looks like some contracts are being bought to open. By purchasing these positions for a volume-weighted average price (VWAP) of $8.37, the traders think IMAX will settle above $41.37 (strike plus VWAP) at the close on Friday, June 19, when front-month options expire.

Not everyone's drinking the IMAX Corporation (NYSE:IMAX) Kool-Aid, though. In fact, 16.7% of the stock's float is sold short, which would take over nine sessions to repurchase, at the equity's average daily volume.

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