Schaeffer's Option Blog: Spread Strategist Envisions a Rapid Rebound for SunPower Corporation (SPWRA)

Business Wire, June 23, 2009

CINCINNATI -- Options traders centered on SunPower Corporation (NASDAQ: SPWRA) yesterday, after brokerage firm Cowen said the stock could benefit from lower solar system prices and stimulus funding in China and the U.S. According to data from WhatTrading.com, the security saw about 11,000 puts change hands, more than six times its average single-session volume of roughly 1,700 contracts. On the flip side, SPWRA saw almost 14,000 calls cross the tape, quintupling its average daily volume of fewer than 2,800 contracts.

Digging deeper into the data, the stock's July 28 call was most active yesterday, with about 4,100 contracts exchanged. At 1:49 p.m. Eastern time, a block of 3,900 contracts – marked "spread" – crossed at the ask price of $1.75, suggesting they were bought. At the same time, two blocks totaling 3,900 July 34 calls – also marked "spread" – changed hands at the bid price of $0.25, implying they were sold. With this in mind, it appears we've uncovered a bull call spread on SPWRA.

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