Call volume has climbed to about 12 times the norm on PCX so far, with roughly 14,000 contracts changing hands. Most active is the stock's September 12 call, where 6,703 contracts have traded -- 57% at the ask price, revealing a bias toward buying activity. With only 3,113 contracts in residence at the September 12 call, it's safe to say that new positions are being added here today.
No news in particular seems to have sparked this flood of front-month call volume, but it's possible that PCX's 3.3% rally today is spooking short sellers. Short interest accounts for a lofty 16.4% of the equity's float, so bearish bettors could be scooping up calls to hedge their shorted shares. With solid technical resistance from PCX's 10-week moving average lingering at $11.88, it's quite possible the stock will be turned back before it can challenge the suddenly popular 12 strike.
This may sound far fetched but what if some large holder of the 13 million short shares was planning to cover in the next day or 2 and thought he/she could drive the price through 12 with the anticipated light volume and make a nice profit. Of course that wouldnt explain the October calls. Maybe something is up