Rumors Driving Fusion-io (FIO, INTC)

Fusion-io, Inc. (NYSE: FIO) is surging today on elevated equity volume and on elevated options trading.  We have almost seen twice the normal trading day’s worth of volume in the stock and this is on would-be rumors of a takeout. Intel Corporation (NASDAQ: INTC) has been thrown out on the ring as the would-be ‘potential’ acquirer.  This is simply the rumor mill at work, and market players have the term “Rumor Friday” for a reason.  With it being a recent IPO, we would wonder why Intel or whoever else might be interested did not step in with an overture before the IPO. This one also took a hard hit after reporting and it needs to be known that Fusion-io peaked just above $40.00 in November.  Even after a 10% jump to $27.50 today on the chatter, this is still way down from its post-IPO peak. The company’s IPO in 2011 went off at $19.00 per share and its post-IPO range is $14.90 to $41.74.

Options trading is very active in March-2012 expirations and very elevated in the Feb-2012 expiration calls which become worthless at the closing bell.