Volume Spike Investor

We are starting to see a larger surge in volume in shares of Capstone Turbine Corp. (NASDAQ: CPST). Shares are up over 2.5% today on almost 5.4 million shares, compared to an average daily volume of about 4.3 million shares. Most of this move came on later as shares were down most of the day before this last surge. The volume is simple to explain: Capstone posts earnings Thursday and it is a low-priced alternative energy stock that has seen a 200% gain since November.

Trading volume isn’t through the roof in the options market on Capstone, but traders have been hanging out in the JAN-2009 CALLS as you can see by the open interest below:
Strike     Vol.          Op-Int
$2.50     923          15,783
$5.00     286           9,837
$7.50     195         10,177

Stay tuned at 247WallSt.com where a full preview with detailed analysis will be run on Wednesday morning.  Expect volume to pick up over the coming two days.

Jon Ogg
June 10, 2008