Options Brief: Power-One (PWER)

PWER – Power-One, Inc. – Shares of the designer and manufacturer of power conversion and power management products increased as much as 9.375% during the trading session to secure an intraday high of $8.75. Power-One’s shares are currently up 7.50% on the day to stand at $8.60 as of 1:45 pm (ET), which is a scant $0.38 below the stock’s 52-week high of $8.98 attained back on May 3, 2010. Bullish traders populating PWER options today appear to be expecting shares of the underlying stock to soar past the current 52-week high by expiration day in January 2011. Investors eyeing Power-One’s long-term upside potential purchased at least 1,800 calls at the January 2011 $10 strike for an average premium of $1.07 each. Call buyers at this strike make money if PWER’s shares jump 28.7% over the current price of $8.60 to trade above the average breakeven price to the upside at $11.07 by expiration day in January 2011.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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