A lucrative contract has the shares pacing for their best day in years
Several penny stocks are making big moves today, including business solutions provider Seven Stars Cloud Group Inc (NASDAQ:SSC). SSC stock, in fact, is the biggest percentage gainer on the Nasdaq today after the firm signed a lucrative exclusive contract, and options traders are flooding the shares.
Seven Stars Cloud stock was last seen 56% higher at $3.08. The shares earlier peaked at $4.18 -- more than double Friday's close of $1.97, and in territory not charted since January. The security is headed for its best session since February 2014, after the company inked a three-year, $24 billion contract with China's National Transportation Capacity to offer blockchain-based digitization services to upgrade China's buses to make them electric.
Against this backdrop, SSC options are flying off the shelves today, especially on the call side. So far, roughly 4,000 calls have traded -- 60 times the norm, and more than twice the previous annual high of 1,355 contracts, set on April 3. Meanwhile, just over 300 puts have changed hands -- 45 times the average intraday clip.
It looks like traders are buying to open the September 5 call, which is the most active option so far, with roughly 1,000 contracts exchanged. By purchasing the calls to open, the traders expect Seven Stars stock to top $5 by the close on Friday, Sept. 21, when the options expire.