Today’s tickers: HK, TSLA & DOW
HK - Halcon Resources Corp. – Shares in independent energy company, Halcon Resources Corp., began the trading session in negative territory, but a sudden burst of call buying on the stock just after 9:50 a.m. ET may have sparked the sharp reversal observed in the price of the underlying this morning. Halcon’s shares are currently up 3.0% on the session at $7.75 as of 11:00 a.m. in New York. The most actively traded options on Halcon Resources today are the Jan. 2015 $10 strike calls, with upwards of 9,600 lots in play versus open interest of 292 contracts. It looks like most of the calls were purchased at a premium of $1.45 apiece. The long-term bullish bets on Halcon pay off at expiration in 2015 as long as shares in the name rally nearly 50% to top the average breakeven point at $11.45. The Jan. 2015 expiry options saw heavy trading traffic last week as well, after more than 22,000 calls changed hands at the $12 striking price. The buyer or buyers of these contracts benefit from continued gains in the price of the underlying stock during the next year and a half. Halcon was rated new ‘Outperform’ with a target price range of $9.00 to $11.00 at Wells Fargo this week.
TSLA - Tesla Motors, Inc. – Bearish options are changing hands on Model S producer, Tesla, on Wednesday as shares in the electric car maker reverse some of the strong gains realized earlier in the week. Shares are currently down 7.4% on the session at $41.06 as of 11:45 a.m. ET after yesterday rallying to fresh all-time highs. The stock continues to trade up 8% since this time last week despite the pullback today. Tesla CEO and billionaire entrepreneur, Elon Musk, yesterday announced a new financing plan for the Model S and earlier this week said demand for the vehicle is stronger than anticipated. Shares in TSLA moved up as much as 23% on Monday in anticipation of Musk’s Tuesday…
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