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VIDEOSam Adams Losing Its Fizz?
Pop in share price, but no notable options volume
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Shares of Molson Coors (TAP) were up over $1.70 or 4.5% to $38.45 yesterday, and its options have traded at 4 times the average daily volume. A good portion of that was in the June $40 call, which saw 2,019 contracts trade at the $1.25 asking price. Prior open interest in the strike was 2089 contract; this was an opening sale. It appears to be tied to stock as part of buy-write. The sale pushed IV down 10 percentage point s on the day, even as the company’s earnings are slated for release next Tuesday, May 5.
The David in publicly traded brewers, Sam Adams (SAM), also saw a pop in its share price, up some 1.20 or 4% yesterday and over 16% over the past 3 trading days. But its options lack any fizz. There was a big purchase of calls back in late March which is proving to be well-bought; no notable volume has occurred in the past 3 weeks.
Tetra Tech (TTEK), a water desalinization company, and one of the few names I’ve personally held as long term holding, was up over 8% early yesterday morning, but ran into heavy resistance at the $26 level. It's now in danger of putting in a bad reversal. Shares are still up some 25% over the past four weeks and have good support $21 a share. I’m going to be patient and hope for a pullback towards $22 as an entry level for buying some call options.Twitter: @Minyanville/minyanville-markets-2
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