Tech behemoth Amazon.com (AMZN) could be at it again, named as a potential buyer of Globalstar Inc. (NASDAQ:GSAT), per a report from the Financial Times. The satellite name is surging in response, last seen up 10.2% to trade at $75.52, but neither company responded to requests for comments on the matter. AMZN is down 0.5% at last glance.
GSAT is now trading at its highest level since 2008, earlier breaking above a ceiling at the $75 region that turned away a December breakout attempt. The shares had been consolidating around $60 off and on since November, but look too have finally broken above resistance at $70. Over the past 12 months GSAT has climbed an impressive 266%.
Bulls have been betting on Globalstar stock over the past 10 weeks. This is per the stock's 50-day call/put volume ratio of 16.79 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 93rd percentile of its annual range.
Options traders have been circling the equity following the buyout rumors, with 8,323 calls and 1,602 puts traded so far, volume that is 19 times the average intraday rate. Seeing the most attention are the April and May 80 calls, with new positions being opened at both.
Short sellers have been retreating, with short interest down 9.2% during the most recent reporting period. This accounts for 6.1% of the stock's total available float and would take a full week for shorts to buy back.
