Bulls Position for Star Scientific Gains
Star Scientific (CIGX) is up 45 percent in the last four sessions, and the bulls are looking for more gains. optionMONSTER’s Heat Seeker tracking system detected unusual activity in the April 3 calls. Some 1,935 contracts changed hands against open interest of 560, with most of the transactions pricing for $0.35. Calls outnumbered puts in the name by a bullish 20-to-1 ratio. CIGX climbed 19 percent to $1.88 in midday trading.
The stock has been rallying despite a lack of positive news after hitting a new all-time low in December and then consolidating above its 30- and 50-day moving averages last month. Buyers may expect the shares to run now that they have entered a price range in a downward gap that occurred in June 2009, with the next apparent resistance around $3.40. Today’s rally is also enriching an investor who used options to craft a synthetic long position in company, which makes cigarette-substitution products and reduces nicotine in tobacco. [Read the full article]
U.S. stocks finished little changed on Monday as a last-minute rebound in financial stocks offset nagging worries the Chinese government may tighten credit, a move that could slow growth in the global economy.
* Based on the latest available data, the Dow Jones industrial average .DJI rose 17.46 points, or 0.16 percent, to end unofficially at 10,642.15. The Standard & Poor’s 500 Index .SPX edged up 0.52 point, or 0.05 percent, to end unofficially at 1,150.51.
* The Nasdaq Composite Index .IXIC ended unofficially off 5.45 points, or 0.23 percent, at 2,362.21.
EU finance ministers on Tuesday discussed standby plans drawn up by countries using the euro to provide Greece with financial help if it becomes the first state in 11 years of monetary union to seek such aid. [Read the full article]