Traders are looking for more gains in Yingli Green Energy, which spiked higher at the end of last week.
optionMONSTER's Heat Seeker system detected heavy buying in the Chinese solar-technology company's August 4 calls, where 5,558 contracts traded for $0.25 to $0.45 on Friday. The volume was 9 times higher than the strike's open interest of just 599 calls before the session began, indicating that this is fresh buying.
YGE surged 13.25 percent to close the session at $3.76. The beaten-down solar sector has cooled in the last month after a big run earlier this year , but Yingli had been trading toward the upper end of its recent range leading up to Friday's jump.
Friday's long calls lock in a $4 purchase price for the Yingli's stock no matter how far it might rise, but they will expire worthless if shares remain below that level through mid-August. The last time it closed above $4 was Feb. 17. (See our Education section)
Total option volume in the name topped 9,000 contracts in the session, more than 9 times its daily average for the last month, with overall calls outnumbering puts by a bullish 10-to-1 ratio. YGE also saw call buying on June 17 .
The company is scheduled to present at the Intersolar North America 2013 industry conference, which begins on Thursday.
(A version of this post appeared on InsideOptions Pro on Friday.)
More From optionMONSTER
- Traders snapping up calls in Emulex
- Will L Brands sales fall short again?
- U.S. Airways is seen holding altitude
- Information Technology
- Investment & Company Information