Options Trading News

September 22, 2016  Thu 6:14 AM CT


Fuelcell Energy rallied yesterday, and one trader is betting on more gains in coming weeks.

optionMONSTER's monitoring system shows that 2,000 October 5 calls were purchased for $0.44 to $0.49 at the same time yesterday. Volume surpassed the strike's open interest of 1,106 contracts, indicating that this is a new position.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

FCEL rose 5.12 percent to $5.34 yesterday but is down 6 percent in the last three months. The fuel-cell power-plant operator is expected to report earnings after the close on Dec. 14.

Overall option volume was 11 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 217-to-1 ratio.

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