Front month calls are the most actively traded contracts by volume, with traders snapping up calls across several striking prices. More than 1,450 calls changed hands at the Oct $10 strike against open interest of 735 contracts. It looks like most of the volume was purchased for a premium of $0.63 each, thus positioning buyers of the $10 calls to profit if shares in CNDO surge more than 40% over today’s high of $7.50 to exceed the average breakeven price of $10.63 by October expiration. Around 2,200 calls traded at the higher Oct $12.5 strike, exceeding open interest at that strike of 1,755 contracts. Time and sales data indicates most of the $12.5 strike calls were purchased at a premium of $0.30 apiece. The Oct $12.5 calls may be profitable at expiration should the price of the underlying jump 70% from the current level to top $12.80.
CREE – Cree, Inc. – Shares in the maker of LED lighting products are up sharply on Tuesday, trading nearly 10% higher to $65.98 during the first hour of the session, after the stock was upgraded to ‘buy’ from ‘hold’ at Canaccord Genuity with an increased target price of $80.00 from $65.00. Goldman Sachs also reiterated its buy rating on the stock today.
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