Today’s tickers: APC, FSLR, SFY, V, XRT, NFLX, DV, MTB, SWY & SNE
APC – Anadarko Petroleum Corp. – Trading in longer-dated call options on Anadarko Petroleum this afternoon indicates one options strategist is expecting shares of the independent oil and gas exploration and production company to rebound significantly by expiration in January 2011. APC’s shares rallied 1.5% at the start of the trading session to reach an intraday high of $43.70. However, as the day progressed, shares lost momentum and are currently down 3.90% on the day at $41.38 with 45 minutes remaining before the closing bell. The long-term bullish player appears to have enacted a ratio call spread, buying 2,000 in-the-money calls at the January 2011 $40 strike for a hefty premium of $10.30 apiece, and selling 4,000 calls at the higher January 2011 $55 strike for a premium of $3.60 each. The net cost of the spread amounts to $3.10 per contract. Therefore, the trader is poised to profit should shares of the underlying stock rebound 4.15% to surpass the effective breakeven price of $43.10 by January expiration. The investor stands ready to accrue maximum potential profits of $11.90 per contract in the event that APC’s shares surge 32.9% from the current price of $41.38 to settle at $55.00 by expiration day.
FSLR – First Solar, Inc. – Bullish options players dominated activity on the manufacturer of photovoltaic solar power systems today with shares of the underlying stock rallying sharply by as much as 5.98% this morning to an intraday high of $125.88, the highest the stock has been in one month. The maker of solar modules was raised to ‘outperform’ from ‘neutral’ at Credit Suisse today where analysts upped their target price on the stock to $150.00 from $110.20. First Solar’s shares tapered off by late afternoon to stand 3.50% higher on the day at $122.93 just before 3:30 pm (ET). Investors positioning for continued upward movement in FSLR’s shares by June expiration purchased at least 1,300 calls at the June $125 strike for an average premium of $1.72 apiece. Call buyers at this strike price make money only if shares of the underlying stock trade above the average breakeven price of $126.72 by expiration tomorrow. Buying interest spread to the higher June $130 strike where roughly 1,100 call options were purchased for an average premium of $0.42 per contract. First Solar’s share price would need to jump 6% from…
