50 day call/put=2.4; 39% float is short; primed to rocket
JPMorgan resumed coverage of SunPower Corporation (SPWRA) this morning with an "underweight" rating, down from its prior "neutral" opinion. "SunPower's [average selling price] premium continues to creep higher, but we see this trend reversing in [the second half of calendar year 2010] as demand shifts away from Germany," wrote the firm in a note to clients.
SPWRA has slipped 0.6% ahead of the open, widening its dismal year-to-date deficit of 19.4%. Since late October, the stock has trudged consistently lower under the double-barreled pressure of its 10-week and 20-week moving averages.
Traders have shown a preference for call options on SPWRA in recent months, with the stock sporting a 50-day ISE/Chicago Board Options Exchange (CBOE) call/put volume ratio of 2.40, in the lofty 78th annual percentile. However, with a noteworthy 39% of SPWRA's float sold short, it's likely that some of these calls were purchased only to hedge short stock positions. http://www.schaeffersresearch.com/commentary/observations.aspx?ID=99017&obspage=2