By Mike Yamamoto of OptionMonster
NEW YORK -- Traders are turning bullish on Clean Energy Fuels (CLNE) ahead of its earnings report this week.
More than 7,000 August 10 calls were purchased for 25 cents to 45 cents on Friday in volume far above previous open interest of just 545 contracts, according to optionMONSTER's Heat Seeker tracking system. Another 3,400 September 10 calls traded for 35 cents to 75 cents, also well above open interest and therefore new positioning.
CLNE was down 0.8% to $9.88 at Friday's close, but only after bouncing sharply off session lows with the afternoon call buying. The stock is down 22% this year and 14% just in the last month, but traders are apparently hoping for a squeeze as short interest makes up an estimated 23% of the float.
The company, which is building a network of natural-gas filling stations, is scheduled to announce second-quarter results on Thursday after the market closes.
Friday's total option volume in the name was 14 times its daily average for the last month. Overall calls outnumbering puts by 15 to 1, a reflection of the session's bullish sentiment.
Yamamoto has no positions in CLNE.