Cree, Inc. (CREE) Hits a New High and Options Are Active

Cree, Inc. (CREE), a stock that has been a rumored takeover target, is on the move today. The stock is up more than 5% to a new annual high and there is a bit of options activity.

Last week I noted the stock was getting active again but there was little in the way of news. The news front continues to remain light with little in the way of obvious catalysts, at least that I have seen, for today's pop. (Though it could just be general buying related to the market?)

The options montage shows that the September 35 and October 30 calls are active. Both strikes have traded volume that is above open interest. My first thought was that this was a sign that buyout rumors were back but then I noticed the put volume.

September 35 and October 30 puts are active as well. A look into the trades shows that many are going off as spreads. In other words, it looks like all this activity (or at least a large portion of it) is tied to one person/institution, as opposed to a rush from buyers all around.

While the option activity might be a bit muddled, the price action is pretty straightforward. If the stock can hold today's intraday breakout, that former peak would now be expected to serve as short-term support.

And don't forget, this is a stock that the Street hasn't yet jumped on. According to Zacks, only 3 of 12 analysts (25 percent) rank the stock with a "buy" rating.