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This is a follow-up to an article we published a few days ago (15 Rallying Stocks With Insider Buying). In that article we identified 15 stocks that have rallied on insider buying over the last two years. We wanted to dig deeper, and went to the options market to analyze sentiment around these names...

We narrowed down the original list, and only focused on stocks that have seen a recent decrease in the Put/Call ratio, which is based on open interest of option contracts.

Considering that the stocks mentioned below have a high number of open call option positions relative to put option positions, it would appear options traders expect these names to rally over the coming weeks.

In other words, insiders seem to be enthusiastic about the prospects of their employers AND options traders are buying it. Do you agree with them?

Insider data sourced from Fidelity, options data sourced from Schaeffer's, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 1/13 - 1/27)

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

Sorted by percentage change in Put/Call Ratio.

1. Cousins Properties Inc. (CUZ):

REIT. Market cap of $882.62M.

Performance: The stock is currently 2.88% above its 20-day MA, 8.0% above its 50-day MA, and 17.44% above its 200-day MA.

Options Market: Current Put/Call ratio at 0.3 vs. previous Put/Call ratio at 2.23 (-86.55% change).

Insiders: Insiders purchased an average of 75,500 shares per year over the last two years.

Other Sentiment Date: Short float at 4.08%, which implies a short ratio of 5.57 days. The stock has gained 8.86% over the last year.

Recent Developments: Announced that it has returned to an all-cash dividend (Jan 2011). Announced that it has formed a partnership with Publix developer Watkins Retail Group, recapitalizing project debt on four existing Watkins Retail Group projects (Jan 2011). Announced that Gregg D. Adzema has been hired as Executive Vice President and Chief Financial Officer (Nov 2010).

2. Chiquita Brands International Inc. (CQB):

Farm Products Industry. Market cap of $728.73M.

Performance: The stock is currently 9.86% above its 20-day MA, 20.15% above its 50-day MA, and 20.84% above its 200-day MA.

Options Market: Current Put/Call ratio at 0.05 vs. previous Put/Call ratio at 0.29 (-82.76% change).

Insiders: Insiders purchased an average of 116,810 shares per year over the last two years.

Other Sentiment Date: Short float at 10.74%, which implies a short ratio of 7 days. The stock has gained 7.41% over the last year.

Recent Developments: Lowered FY 2010 guidance (Nov 2010).

3. Immucor Inc. (BLUD):

Diagnostic Substances Industry. Market cap of $1.46B.

Performance: The stock is currently 2.49% above its 20-day MA, 6.3% above its 50-day MA, and 8.67% above its 200-day MA.

Options Market: Current Put/Call ratio at 0.24 vs. previous Put/Call ratio at 0.37 (-35.14% change).

Insiders: Insiders purchased an average of 317,500 shares per year over the last two years.

Other Sentiment Date: Short float at 3.26%, which implies a short ratio of 3.78 days. The stock has gained 10.51% over the last year.

Recent Developments: Reaffirmed FY 2011 guidance (Jan 2011). Announced that the United States Department of Justice, Antitrust Division, has informed Immucor that its investigation of the Company has been closed (Nov 2010).

4. China Medical Technologies Inc. (CMED):

Medical Instruments & Supplies Industry. Market cap of $388.21M.

Performance: The stock is currently 4.11% above its 20-day MA, 3.32% above its 50-day MA, and 4.99% above its 200-day MA.

Options Market: Current Put/Call ratio at 0.92 vs. previous Put/Call ratio at 1.18 (-22.03% change).

Insiders: Insiders purchased an average of 127,600 shares per year over the last two years.

Other Sentiment Date: Short float at 19.97%, which implies a short ratio of 14.33 days. The stock has lost -9.28% over the last year.

Recent Developments: Announced the closing of $150 million convertible senior note offering (Dec 2010). Issued Q3 2011 and FY 2011 guidance above analysts' estimates (Nov 2010)

5. Ormat Technologies Inc. (ORA):

Electric Utilities Industry. Market cap of $1.39B.

Performance: The stock is currently 3.16% above its 20-day MA, 8.22% above its 50-day MA, and 8.64% above its 200-day MA.

Options Market: Current Put/Call ratio at 0.56 vs. previous Put/Call ratio at 0.72 (-22.22% change).

Insiders: Insiders purchased an average of 853,539 shares per year over the last two years.

Other Sentiment Date: Short float at 7.88%, which implies a short ratio of 12.58 days. The stock has lost -13.31% over the last year.

Recent Developments: Nevada Geothermal Power Inc. and Ormat Technologies announced that they have agreed to become joint venture partners to develop geothermal power plants in Oregon (Jan 2011). Announced that it completed the official granting process for the 26,000 acre San Pablo II geothermal exploration concession in northern Chile (Dec 2010).

Source: 5 Rallying Stocks With Insider Buying and Decreasing Put/Call Ratios