STEC loses 29 cents to $8.20 and May 10 calls on the Santa Ana, CA storage device-maker are busy today. 7,675 contracts traded. The flow has been in small lots and includes a multi-exchange sweep of 756 contracts at the 7-cent asking price. VWAP so far is 8.6 cents and ISEE is hinting at opening buyers. 30-day ATM implied volatility is up 11 percent to 58. Shares are falling to 52-week lows today on above average turnover of 531K . STEC is down more than 60 percent from the highs seen a year ago and today’s call buyers are possibly speculating in the name on the view the stock is now oversold. Earnings will come into play early-May and probably before the May expiration. (This would be a very spec play, but might be worth a shot for a short-term bounce or maybe the Jun 10s for 15c.)
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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.