U.S. stocks are following crude oil higher this morning, ahead of the weekly crude inventories report. Among equities in focus today are online loan specialist LendingClub Corp (NYSE:LC), energy stock Gevo, Inc. (NASDAQ:GEVO), and yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU).
After popping 6.8% at the open, LC was last seen down 2.1% at $4.30, amid reports former CEO Renaud Laplanche -- who resigned last month in a cloud of scandal -- has been in talks with private equity firms and banks regarding a potential buyout of the company. LendingClub Corp has given up 75% of its value over the past year, and hit a record low of $3.44 in mid-May on news of a U.S. Justice Department investigation. While all but one of 10 analysts currently rates LC a "hold" or worse, options traders appear to be eyeing a recovery for the battered stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LC now has a 10-day call/put volume ratio of 4.43 -- higher than nearly three-quarters of similar readings taken in the past year.
GEVO has nearly doubled out of the gate -- last seen up 82.3% at $1.10 -- on news the company's renewable alcohol to jet fuel (ATJ) will be used today for the first time on two commercial Alaska Air Group, Inc. (NYSE:ALK) flights. Longer term, the shares of Gevo, Inc. have been in a steady decline for several years, shedding 71% in the past 52 weeks alone. Short interest on the stock has been building lately, up 57% during the most recent two-week reporting period. However, given GEVO's typically low volume, it would take less than one session to cover the 11.5% of GEVO's available float that's now sold short.
LULU may have options traders on edge this morning, last seen up 1.2% at $68.94. Earlier, the company reported first-quarter earnings that came up just shy of analysts' predictions, while revenue easily beat expectations. The stock has now added 31.4% year-to-date -- and is not far from its April 4 annual high of $69.73. Today's post-earnings upside could have short sellers calling it quits. Short interest accounts for 19.3% of Lululemon Athletica inc.'s available float, or more than two weeks of pent-up buying demand, at the average pace of trading.
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