HOFT Potential Breakout

Hooker Furniture Corp (HOFT) is potentially breaking out through the $14.00 level this afternoon. $14.00 has been resistance for the stock multiple times since May, forming a ascending triangle in the chart (below). RSI and Stochastics are both rising (neither is registering oversold) and there was also a bullish MACD crossover. However, volume is light today. Support is at around $13.05 (the 50-day SMA and the lower trendline).

HOFT Trading History: No position.

STZ Front Month Calls Active

Constellation Brands (STZ) produces and imports alcoholic beverage including wine, beer and liquor. The September $15 calls have been active this morning (volume over 1,900 versus open interest of 197). With 5 days to expiration, the stock trades just above the strike at $15.10 on below average volume. The call option trades looked to be going at the ask early on, and later at the bid of 30 cents. The have been zero put transactions.

Trading History:
September 14th: bought STZ for $15.10.
September 17th: sold STZ for $15.62 (+$0.52, +3.4%)

WMGI - Breakout

Wright Medical Group, Inc. (WMGI) is an orthopaedic medical device company. The company's stock has just closed at $17.10 with above average volume. The price is above resistence ($16.95), which it tested in June and August. It also climbed above its 200-day SMA on Wednesday. Along with the breakout, the calls showed strong volume today, particularly the $20November issue, which traded 1,386 versus open interest of only 81.

Update (Sept 14): Today WGMI announced FDA 510K clearance of PRO-STIM™ Injectable Osteoinductive Bone Graft Substitute (press release). The stock took a nasty dip to $16.82 but recovered and is trading at $17.25 now. So the b/o above $17 is still on for now.

WMGI Trading History:
September 11th, bought for $17.10
September 17th, sold for $18.22 (+1.12, +6.5%)

GNVC - Unusual Afterhours Volume

GenVec, Inc. (GNVC) is a biopharmaceutical company that develops gene-based drugs and vaccines. Its lead product candidate is TNFerade, which is for the treatment of pancreatic cancer and is in Phase III trials.

GNVC saw heavy afterhours trading last night of over 4.5M shares. It closed at 79 cents/sh and finished the a/h session at 82 or 83 cents. I have no idea why interest surged in the stock so suddenly. The most plausible explanations I've seen so far are that a medical journal published something about the company's product, or that it is simply a pump-n-dump.

I purchased GNVC during yesterday's a/h session. This morning GNVC is at around 82 cents in premarket trading with volume of 400k shares with no news out.

GNVC Trading History:
September 10th, bought GNVC for 82 cents.
September 24th, sold GNVC in premarket for 91 cents (+11%).
Current Position: None.

SMTC Possible Breakout

Semtech Corp. (SMTC) is a semiconductor company.

The stock is testing resistance at it July high of $19.00. SMTC hit a high of $19.16 this morning and is currently trading in a tight range within a nickel of $19.00. It is up about 30 cents on heavy volume. $20Dec call option volume has exceeded 1,900 versus open interest of only 77.

Update (September 11): SMTC is down 2.4% on above average volume. National Semiconductor (NSM) reported earnings last night that beat street estimates, but the stock sold off. Since the breakout failed and the sector is under pressure today, I sold SMTC for a loss.

SMTC Trading History:
September 10, bought for $19.03.
September 11, sold for $18.63 (-0.40, -2.1%)

Current position: None

CBE Puts Active Ahead of Removal From S&P500

Cooper Industries Ltd (CBE) put options are active for a second straight day. The stock will be removed from the S&P500 on September 8th (link). It appears that 2000 $30Oct puts were purchased (last transaction at $0.51) against a sell of $35Oct calls ($1.31), with shares trading at around $33.95.

Update/Correction (Sept 8): OptionMonster is reporting that the activity was actually bullish (put sells, call buys).

LIZ Call Volume

Liz Claiborne (LIZ) call trading picked up early this afternoon, particularly in the $5Jan issues (volume over 2,700 with open interest 3,300, at leat one block appeared to be traded at the ask up to 65 cents). LIZ shares are currently trading up 8 cents to $4.02 (+2%).

Update (Sept 7th): On Thursday afternoon, LIZ announced that it had hired a turnaround firm (link to Reuters story). Also, LIZ will be presenting at the GS retailing Conference on Sept 9th. LIZ closed at $4.12 on Friday.