Option Action: BEAT, CREE, PCX

Filed under: Earnings reports, Industry, Options, Stock screen, NASDAQ

This post was written by Minyanville contributor Steve Smith.

Shares of CardioNet (NASDAQ:BEAT)shares are off $0.20 to $18.60 and option volume is three times the daily average. The focus is buying in the June $17.50 put which has seen over 5,100 contracts trade, 90% of which occurred at the ask, and exceeds prior open interest of if 1,018 contracts. This new put buying is driving up implied volatility 14% to the 65% level this morning.

CREE Inc(NASDAQ:CREE) shares are up over 12% to $31.30 after the electronics parts manufacturer pre-announced and raised guidance. Options running 3X the daily average with 85% of trades on the call side. Active strikes are the include June $30 call and July $30 calls, with latter's volume exceeding strike's of 295 exceeding prior open interest. Notable is buying in longer dated series; the Sep $30 call, Dec $35 call and Jan 2010 $30 call have all traded over 200 contracts all of which exceed their strike's prior open interest.

Patriot Coal (NYSE:PCX)is up 19 cents to $9.15 and 2,500 Jun 10 calls traded. Nearly all the volume has been done at the asking price suggesting this speculative call buying.

Option Action: BEAT, CREE, PCX originally appeared on BloggingStocks on Wed, 27 May 2009 13:20:00 EST. Please see our terms for use of feeds.

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