Clean Energy Fuels Corp. (CLNE), founded by famed energy investor and hedge fund manager Boone Pickens, provides natural gas as an alternative fuel to vehicle fleets in the U.S. and Canada, including customers in the refuse, transit, shuttle, taxi, intrastate and interstate trucking, airport and municipal fleet markets, in which leading private equity firm, Leonard Green & Partners LP, with $15 billion in capital, filed SEC form SC 13G on Monday indicating that it holds a new 5.38 million share position in the company.
Sentiment: Strong Buy
Clean Energy Fuels Corp (NASDAQ:CLNE) saw increased action among option traders yesterday, when volume was roughly 2.5 times greater than usual. Most of the action occurred on the call side, where just under 4,800 contracts changed hands, compared to an expected daily volume of 1,562.
Leading the way was CLNE's September 16 call. Nearly 1,600 contracts traded at the strike, 97% at the ask price, at a volume-weighted average price (VWAP) of $0.25. Since open interest increased substantially overnight, it's safe to assume the calls were bought to open.
As such, the traders will profit if Clean Energy Fuels climbs the charts and hits $16.25, which is the sum of the strike price and VWAP. From the stock's current post at $13.22, that represents a gain of nearly 23%, as well as territory not charted since last July. Additional gains can be had north of that point, while the potential downside is limited to the initial net debit.
Yesterday's call-skewed activity is more of the same for the natural gas producer. The company has racked up an astounding 10-day call/put volume ratio of 27.36, according to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). In other words, calls have been bought to open by a count of roughly 27-to-1 over puts in the past two weeks; in fact, over the last year, calls have never been picked up so quickly, relative to puts.
As a result, CLNE has a Schaeffer's put/call open interest ratio (SOIR) of just 0.43. This number has never been lower in the past 52 weeks, meaning short-term open interest is slanted toward calls over puts to an unusually high degree.
Of course, some of this may be the result of short protection. Over one-quarter of CLNE shares are sold short, which means quite a few investors could be in trouble if the stock advances. But by buying protective calls, the shorts can lock in a maximum entry point at which to buy back the shares, even if they rally subst
Sentiment: Strong Buy
Looking at WPRT deal, their LNG, CNG business is about to take off. They are shreading non core assets for CNG, LNG. Look at deal where they must supply 50% of WPRT new bundle deal. This means both WPRT and CLNE expect their business to be materially higher soon. The investment on those call is around $400,000 but would be sold if price was at $1 million. Look for those calls to go to 0.60 or $.70 cents before July end.
wassup44, The price was right,at the time. Must have a lot faith. 1500 contracts is like 150000 shares.I wish that person well.
I bought 20 contracts of Sept. $15.00 calls @ .38,last Fri. Roll of the dice.