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.
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.
Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.
Visit: Interactive Brokers