American Superconductor (AMSC) adds 6 cents to $4 and options on on the stock are seeing some interest today. 1,530 calls and 60 puts so far. Typical daily volume is less than 400 contracts. June 5 calls are the most actives. More than 1,000 traded and The top trade is a 324-lot for a nickel. July 5 calls are seeing interest as well, with 266 traded. 30-day ATM Vols have eased 2 percent to 72.5 after the company announced it has bought exclusive rights to a high temp superconductor patent. However, the interest in deep OTM calls might be a play on earnings, due out tomorrow morning. Short interest might also be driving the flow. AMSC has a relatively high short to float ratio of 31.7 percent.
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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.