OptionsHouse

Options Trading News

November 6, 2012  Tue 11:58 AM CT

SMH: SEE CHART GET CHAIN FIND STRATEGIES
Chip stocks have been trying to climb, and one investor thinks the upside will continue.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 5,000 December 33 calls in the Market Vectors Semiconductor Fund for $0.55. A matching number of November 31 calls were sold at the same time for $1.15 but volume was below open interest, indicating that an existing position was closed and rolled to the other strike.

The investor probably bought the November 31 calls at an earlier date and is now sitting on profits after stocks including Intel and Texas Instruments bounced from their October lows. He or she collected a credit of $0.60, which may have been their initial investment(See our Education section) , and now has an additional month to enjoy further upside.

The SMH is up 1.25 percent to $32.33 in afternoon trading. The exchange-traded fund has been shuffling in a range for the last year amid worries about the global economy and the PC industry but has outperformed the broader market with a 10 percent gain in the last month.

Overall option volume in the fund is quadruple the daily average, with calls outnumbering puts by more than 100 to 1.
Share this article with your friends


Related Stories

SMH

Big put buying returns to chip fund

February 24, 2015

The Market Vectors Semiconductor Fund is drawing large put trades for the fourth time this month as it trades 14-year highs.

SMH

Caution remains in semiconductors

February 17, 2015

The Market Vectors Semiconductor Fund has rebounded after lagging in December and January, but the ETF saw heavy put buying last week.

SMH

Another big bearish play in chips

February 6, 2015

The Market Vectors Semiconductor Fund is drawing bearish option activity today for the second time in sessions.

SMH

Bears bracing for pullback in chips

February 5, 2015

The Market Vectors Semiconductor Fund has been winding its way lower for the last two months as technology has lagged the broader market.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »