Eastman Kodak: Picture Perfect Short Squeeze
Eastman Kodak (NYSE: EK) is rocketing higher today by over 8.35% to $6.49 on no news whatsoever. It appears that bullish technical chart patterns have ignited some of the 19.38% short interest to scramble to cover their positions. The stock made a huge jump in February from $4.75 to nearly $7 and has managed to keep much of those gains into April. The 50 and 200-day moving averages are both signaling a bullish trend for the stock and it seems likely that a mixture of short interest and bull persuasion may send the stock near to $7 once again.
Eastman Kodak does have significant resistance at the $7 level, so it is anyone’s guess what the stock might be when it gets there. Today’s action has ignited some options action as well. The April $6 and $7 calls have been trading heavily (comparatively) all morning, as well as the May $7 which is showing new bullish purchases (5,527 contracts have traded on an open interest of less than 600).
