Today’s tickers: VMED, FSLR, BDK, SNDK
VMED – Option trades in play on Virgin today reflect near-term bullish and long-term bearish sentiment by investors amid a more than 3% decline in shares to $9.52. The provider of high-speed internet access, pay-television, and telephone services in the United Kingdom attracted call-buyers to the July contract. Approximately 6,000 calls were coveted at the July 10 strike price for a premium of 40 cents apiece by traders positioning for a near-term rebound in the stock. Shares must rally 9% higher before investors begin amass profits at the breakeven price of $10.40. Elsewhere, traders singing a bearish tune were seen making reversals in the December contract. It appears that 10,000 calls were shed for 75 cents apiece at the December 12.5 strike and spread against the purchase of 10,000 put options at the December 7.5 strike price for 65 cents each. The reversal yields a net credit of 10 cents per contract. The full credit is safe in the bank if both options expire out-of-the-money by expiration. Additional profits would be enjoyed by investors long the bearish puts in the event that shares decline through $7.50. The short call position leaves traders vulnerable to potentially unlimited losses if the stock were to rebound through the breakeven point to the upside at $12.60 by the third Friday in December. – Virgin Media, Inc.
FSLR – The designer and manufacturer of solar modules appeared on our ‘most active by options’ volume market scanner after one trader put on a bearish put spread in the August contract. Shares of the firm are currently lower by 2% to stand at $143.25. The put spread involved the purchase of 11,500 puts at the August 125 strike price for an average premium of 4.90 apiece against the sale of 11,500 puts at the lower August 115 strike for 2.70. The net cost of the transaction amounts to 2.20 per contract and yields maximum potential profits of 7.80 if shares decline to $115.00 by expiration next month. The stock would need to slip approximately 14% lower before the trader starts to profit at the breakeven point of $122.80. – First Solar, Inc.
BDK – Shares of the global manufacturer of power tools and home improvement products have climbed about 2% to $27.24 following renewed takeover rumors reported by one news source, which cited Danaher (DHR) as a “possible suitor”. Notable call buying activity was observed at…