From The Street.com
C-Cube Microsystems (CUBE:Nasdaq), a video compression company, saw some actions that looked speculatively bullish, according to Paul Foster of Chicago's 1010WallStreet.com.
A quick volume spurt at the open sent volume on C-Cube's out-of-the-money June 30 and 35 calls into triple digits.
The cost of the June 30 calls popped 1 3/4 ($175) to 2 1/4 ($225) on volume of 640 contracts. The June 35 contract, for which volume hit 335, rose 1/4 ($25) to 1/2 ($50). While the volume isn't blockbuster, the price increases in the contracts show a strong desire to get a long position.
In the short term, that decision was proving smart. The stock spiked up 9% by midday, flying past the 30 strike price. The stock was 31, up 2 9/16, this afternoon.
Foster said he hadn't heard any specific rumors, but video compression is a sector ripe for consolidation, and several companies could logically be interested in C-Cube.
thestreet.com |
