MEMC (WFR) sees a morning spike on volume approaching 4 million shares and call action is heating up in the silicon wafer maker. 10,000 call options and 500 put options traded in the name so far. Shares are up 20 cents to $5.38 and near the best levels of the day. Options order flow inlcudes a multi-exchange sweep of 1,570 contracts for 14 cents when the market was 12 to 14 cents. Another 1,250 traded for 13 cents when the market was 11 to 12 cents. Feb 6 calls on WFR are 12.4 percent out-of-the-money and expiring in 11 days. Volume is neary 6,000 contracts. Mar 5 and 6 calls are seeing interest as well and levels of implied volatility are moving up 10 percent to 77. No news on the stock, which is on a four-day 18 percent winning streak to start the month of February. Speculative call buying comes ahead of the company’s Feb 15 earnings report. MEMC pre-announced on Jan 18.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.