Bearish Spreads In Intel Options As Shares Extend Pull Back
by Option Review - December 13th, 2011 3:07 pm
Today’s tickers: INTC, SKUL, CAM & PAAS
INTC - Intel Corp. – Shares in the world’s largest chipmaker extended losses today, falling 2.25% to $23.46 in the first half of the session, following Intel’s announcement on Monday that fourth-quarter revenue would be lower than previously estimated due to shortages in hard disk drives. A sizable bearish put spread initiated in the July 2012 contract this morning may be one investor’s strategy to benefit from possible sharp share price erosion over the next seven months. It looks like the trader purchased a roughly 10,000-lot July 2012 $23/$17 put spread for a net premium of $1.60 per contract. The investor responsible for the transaction may profit at expiration in the event that Intel’s shares drop 8.8% to trade below the effective breakeven point on the spread at $21.40. Maximum potential profits of $4.40 per contract are available on the trade should the chipmaker’s shares plummet 27.5% to settle below $17.00 at expiration day next year. Shares in INTC last traded below $17.00 back in July 2009. The company is scheduled to report fourth-quarter earnings on January 19, 2012.
SKUL - Skullcandy, Inc. – Bearish activity in Skullcandy options suggests traders are positioning for shares in the maker of headphones and other fashionable electronics accessories to pull back ahead of expiration next month. Shares in the Park City, Utah-based company earlier fell 5.5% to $11.79, the lowest traded price since Skullcandy had its IPO back in July. Investors bracing for SKUL’s shares to continue to hit fresh lows in the next five weeks snapped up more than 730 in-the-money puts at the Jan. 2012 $12.5 strike for an average premium of $1.47 apiece. Put buyers at this strike stand prepared to profit in the event that shares in the headphones maker drop 6.4% from today’s low of $11.79…
Mylan Rebounds After FDA Report Signals All Clear
by Option Review - August 13th, 2009 5:07 pm
Today’s tickers: MYL, MU, ACAD, PAAS, PALM, KLAC, LDK, OIH & SM
ACAD – Shares of the biopharmaceutical company have soared upwards of 17.5% during the trading session and currently stand at $6.23. ACAD appeared on our ‘hot by options volume’ market scanner after one investor initiated a long butterfly spread in the September contract. The trader constructed the…