Foster Wheeler Call Volume Surges
Interesting note on Foster Wheeler today. According to Bloomberg , call volume at noon on FWLT hit 10,400 which is nearly 4x normal average. Now the report suggests this has something to do with a contract won in Abu Dhabi. This seems like non-sense as the deal doesn't seem like anything exceptional (FWLT didn't list the value). Mainly though the majority of the calls bought today were for March '11 in the $38-40 range suggesting that some investors expect a significant increase in prices. Though one needs to consider that the average option price of $.25 means the investor isn't heavily invested. High option volumes can be a good indicator of something big in the works or just a huge headfake. Time will tell on this one.