Clean Energy Fuels has never traded above $25, and one trader is
betting that it will stay that way into the New Year.
optionMONSTER's tracking programs detected the sale of more than
3,300 January 25 calls for $0.20 yesterday against open interest of
1,251 contracts. Overall option volume in the alternative-fuel
stock was more than twice the average level, with call selling
accounting for almost all the activity.
CLNE fell 4.4 percent to $14.57 yesterday and is down 23 percent
since the beginning of August. That marks a sharp contrast with the
broader market over the same period and the rally seen in Chinese
photovoltaic stocks such as ReneSola and Trina Solar.
The company's last earnings report on Aug. 9 beat forecasts, with
its loss narrower than expected and revenue ahead of consensus.
CLNE, which runs natural-gas fueling stations for vehicles, has
nonetheless been targeted heavily by the bears and faced heavy
The negative sentiment is probably related to CLNE's overvaluation
by most metrics, with a forward price-to-earnings ratio of 58 times
and an enterprise value of more than 1,000 times EBITDA.
Traders also sold about 500 October 15 calls for $0.50 to $0.65,
wagering that CLNE will remain below $15 for the next there weeks.
(Chart courtesy of tradeMONSTER)
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